Cheil sells equity to Prudential

Cheil Investment Trust Securities has procured 100~200 billion won by selling off 25% of its shares to Prudential, a U.S. life insurance company, and will be reborn as a foreign investment trust. On the 16th, Cheil Investment Trust revealed, "As Prudential has completely finished the evaluation of Cheil Investment Trust`s asset and liability position, the final shareholding transfer volume and price will be decided by the 24th."

An official at Cheil Investment Trust remarked, "As only common shares will be transferred without any preferred shares, both companies will jointly manage the insurance and investment trust business, and part of the invested proceeds are to be received sometime in July."

The side of Cheil Jedang holds 40% of the shares of Cheil Investment Trust, with Lee Jae-Hyun the vice-chairman of Cheil Jedang holding 7% and Cheil Jedang Co. itself holding 32% of its shares. With a deposit volume of 9 trillion won, Cheil Investment Trust is the 5th largest in the industry behind Hyundai, Korea, Daehan and Samsung. Prudential, which owns a Korea life insurance company, will acquire Cheil Investment Trust to produce a synergy effect through the management of life insurance assets.