Three private equity funds have submitted letters of intent to take over Woori Financial Group while no financial group will participate in the M&A competition.

The Public Fund Oversight Committee, which closed the receiving of LOIs on Wednesday, said the potential buyers are MBK Partners, Vogo Investment, and TStone Partners.

The committee, under the wing of the Financial Services Commission, plans to announce a preferred bidder or delay the process of sale of the state-run Woori Financial according to the situation.

As sales terms seem unattractive to local investors, many analysts have issued the possibility that the sale process will be postponed again, following the case during the latter half of 2010.

Under current laws, it is difficult for major financial groups such as KB, Shinhan and Hana to raise funds as long as laws or enforcement ordinances are not revised.

Though the FSC has been striving to revise the ordinances and lower the minimum takeover stake level from 95 percent to 50 percent, a group of ruling and opposition lawmakers have been blocking the move.

Analysts predict the hurdle would continue unless some senior policymakers drop their ambition to launch a mega-bank here though a block sale of Woori business units.

By Kim Yon-se (kys@heraldcorp.com)