Lotte Non-Life Insurance rallies on Shinhan Financial Group acquisition; surges in the 12% range early in trading [Stock NOW]

[Financial News] Lotte Non-Life Insurance shares are gaining on news of Shinhan Financial Group’s acquisition.
As of 10:10 a.m. on the 14th, Lotte Non-Life Insurance was trading at 2,630 won, up 115 won (4.57%) from the previous trading day. Early in the session, it climbed as high as 2,835 won, surging 12.72%.
The shares are extending their gains after surging 9.66% the previous day on news of Shinhan Financial Group’s acquisition.
Shinhan Financial Group agreed the previous day to acquire a 77.04% stake in Lotte Non-Life Insurance for 693.3 billion won. It plans to acquire the remaining stake after completing the required procedures, including approval from financial authorities, and pursue a merger with Shinhan EZ General Insurance.
Shinhan Financial Group, by contrast, is lower. At the same time, it was trading at 96,300 won, down 3,400 won (3.41%) from the previous close.
Securities analysts have expressed both optimism and concern about the acquisition. Jeon Bae-seung, a research analyst at LS Securities, said, “With the decline in the common equity tier 1 (CET1) ratio and the additional capital investment, and with dividends from Lotte Non-Life Insurance unavailable for a considerable period, some negative impact on cash flow is expected. However, the acquisition price is appropriate, and synergies within the group are expected to improve profitability over the medium to long term.”
[email protected] Seo Min-ji Reporter