The Ontario Teachers’ Pension Plan (OTPP) has acquired a 9.9 percent stake in South Korean insurer Kyobo Life Insurance (Kyobo). The Korea Asset Management Corporation (KAMCO) sold the stake to OTPP for $400 million.

OTPP beat Affinity Equity Partners as the preferred bidder for the Kyobo stake, reported Reuters last week.The bid price was 230,000 Korean won ($190) per share, with the total stake to be sold valued at 470 billion Korean won ($398.26 million), the Chosun Ilbo reported.

This transaction is OTPP’s first direct investment into Korea. Seoul-based Kyobo, the third-largest insurer in the country, is a privately held company that offers a range of life insurance products to 4.5 million retail customers. The acquirer is the largest single-profession pension plan in Canada with nearly $120 billion in assets. 

Advising OTPP on international law aspects was a  Hong Kong-based Weil, Gotshal & Manges team led by corporate partners Peter Feist and Soo-Jin Shim. Shin & Kim and Yulchon acted as OTPP's Korean counsel and for KAMCO respectively.