POSCO To Sell Stake In Construction Unit To Saudi Fund
Now Reading
POSCO To Sell Stake In Construction Unit To Saudi Fund

POSCO To Sell Stake In Construction Unit To Saudi Fund

POSCO signed the deal to sell a 38 per cent stake plus new shares of POSCO Engineering & Construction to Saudi’s PIF.

Avatar

South Korean steelmaker POSCO has signed a preliminary deal with Saudi Arabia’s Public Investment Fund (PIF) to sell part of its construction unit for about 1.5 trillion won ($1.36 billion), Korea Economic Daily reported.

POSCO on Thursday signed the deal to sell a 38 per cent stake plus new shares of POSCO Engineering & Construction to PIF, the newspaper said, citing investment banking sources. POSCO owns almost 90 per cent of POSCO E&C.

The deal is due to be finalised next month, the report added.

POSCO planned to use some of the proceeds to build a joint construction firm with PIF, to help tap into the gas and oil plant market in Saudi Arabia. Merrill Lynch and JP Morgan were managing the deal.

A POSCO spokesman declined to comment on the report, saying only that no final decision had been made about the sale.

POSCO Chairman Kwon Oh-joon said last week that the steelmaker would be able to sell a stake in POSCO E&C soon, as part of its efforts to unload assets and cope with the steel market downturn.


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top