Lone Star and its South Korean chief were found not guilty of stock price manipulation in an appeals court ruling that should clear the way for the US private equity group’s sale of Korea Exchange Bank to HSBC.

The Seoul High Court on Tuesday overturned a lower court ruling that sentenced Paul Yoo, Lone Star’s country head, to five years in prison for depressing the stock price of KEB’s former credit card unit in order to acquire it at a cheaper price.