SaemaulGeumgo Announces Intent to Acquire M Capital

The Korea Federation of Community Credit Cooperatives (Saemaul Geumgo) made a significant announcement on December 18th, revealing that its board of directors has opted to exercise its right of first refusal to acquire M Capital.

Back in 2020, Saemaul Geumgo secured a position as a limited partner (LP) in a private equity fund (PEF) established with the primary objective of acquiring M Capital. This strategic move granted Saemaul Geumgo the right to purchase a substantial 98.37 percent of M Capital's shares.

To ensure a thorough evaluation of this acquisition, Saemaul Geumgo formed a dedicated internal team in October of this year. Additionally, the organization engaged a prominent domestic accounting firm and law firm to conduct comprehensive due diligence on M Capital's overall operations. This diligence is aimed at determining a fair acquisition price.

Established in 1997, M Capital is a specialized credit finance company with a primary focus on industrial and corporate financing. Its customer base predominantly consists of small business owners and SMEs, which is expected to create significant synergies through various cooperative opportunities with Saemaul Geumgo.

Saemaul Geumgo is planning to sign the stock purchase agreement (SPA) within this month and aims to complete the acquisition process, including a corporate merger filing, by the first half of next year.

An official from Saemaul Geumgo stated, "The acquisition of M Capital will expand Saemaul Geumgo's business scope and enable us to provide comprehensive financial services to our customers." The official further added, "We also aim to contribute to revitalizing local economies by offering financial services to low-credit groups in financial blind spots."