Ontario Teachers' Pension Plan (Teachers') today announced the successful
completion of its acquisition of a 9.9% stake in Kyobo Life Insurance Co. Ltd.
(Kyobo), the third-largest insurer in South Korea.
Teachers' is acquiring the stake from Korea Asset Management Corporation
(KAMCO) for approximately US$400 million (KRW 468.1 billion) following a sales
process initiated by KAMCO earlier this year.
Headquartered in Seoul, Kyobo is a privately held company that offers a broad
range of life insurance products to its 4.5 million retail customers. This
transaction is Teachers' first direct investment in Korea and was led by Public
Equities' Relationship Investing group, which acquires significant minority
stakes in both publicly-listed and private companies. Relationship Investing
currently has a range of direct investments throughout Asia including in Hong
Kong, China, Japan, Malaysia and Indonesia.
"Kyobo is a leading insurance brand with a strong customer base and financial
performance," said Wayne Kozun, Senior Vice-President of Public Equities. "We
believe our investment is a unique opportunity to acquire a sizeable stake in
the Korean life insurance industry's most profitable company, and further
expand our direct investments in Asia. We look forward to being a constructive
partner with Kyobo, its management team and its shareholders."
With $117.1 billion in assets as of December 31, 2011, the Ontario Teachers'
Pension Plan is the largest single-profession pension plan in Canada. An
independent organization, it invests the pension fund's assets and administers
the pensions of 300,000 active and retired teachers in Ontario. For more
information visit www.otpp.com
KAMCO is a Korean quasi governmental entity established to restructure
corporations, manage state-owned properties and collect overdue taxes. KAMCO
serves the development of Korea's economy, maximizing government revenue by
effectively managing government commissioned state-owned properties.
SOURCE: Ontario Teachers' Pension Plan
Director, Communications and Media Relations
Ontario Teachers' Pension Plan