Samsung Fire & Marine Insurance is preparing to significantly expand its international presence by increasing its ownership stake in British specialty insurer Canopius from 40% to approximately 80%.
The proposed acquisition, valued at around 3trn won ($2.2bn), represents a major development in South Korea's overseas investment strategy and could become the largest overseas acquisition ever undertaken by a South Korean financial company.
The transaction is expected to be financed through the issuance of hybrid bonds in the US market rather than relying on dividend payments from Samsung Electronics.
Global investment firm KKR and the Korea Investment Corporation (KIC) are also participating in the deal, contributing approximately $500m and $300m respectively.
Following completion, Samsung Fire & Marine is expected to hold around 79% of Canopius, while KKR and KIC will own approximately 13% and 8%.
