Affinity Equity nets $220 mn from block sale of Shinhan Financial

Affinity Equity Partners has unloaded its remaining shares in Shinhan Financial Group, the second largest banking group in South Korea, for about 580 billion won ($424 million), pocketing nearly 300 billion won ($220 million) in capital gains.

The Asia-focused private equity firm sold 9,742,430 shares in Shinhan in a block deal after the stock market's close on Tuesday.

The shares were offered at a 2-25% discount off the closing price of 61,000 won per share. The stocks represented a 1.94% stake in the parent group of Shinhan Bank.

Affinity cashed out as Shinhan’s share price approached 64,000 won, its highest level in over a decade, touched on Aug. 30, 2024, as domestic stock markets have enjoyed a honeymoon rally since President Lee Jae-myung took office early this month.

In 2020, Affinity purchased 20,440,000 shares of Shinhan at 29,600 won per share for a total of 605 billion won, participating in its rights offering. 

After raising its stake in the financial services group firm to as high as 9.74%, it has gradually reduced its holdings. Analysts said Affinity’s divestment will ease overhang concerns about Shinhan.
 
Write to Yeonhee Kim at yhkim@hankyung.com