Korea sells steel stake

Korea sells steel stake

SEOUL (AFP): South Korea's government has sold a US$300 million stake in steel giant Pohang Steel and Iron Corp. (POSCO) in the first overseas offering of a state-owned firm here, officials said Thursday.

Seoul on Wednesday sold a 5.11 percent stake in the giant company, which is earmarked for privatization under reform plans, for a total of $300.4 million, the Planning and Budget Commission said.

The commission branded the sale of the 4,925 shares held by the government and the state-owned Korea Development Bank (KDB), which were sold in the form of four American Deposit Receipts (ADRs) to a POSCO share, a success.

The average price of the offer was $15.25 per ADR, with the government selling its entire 3.14 percent stake in the offering, while the KDB shed 1.97 percent of its total 21.6 percent stake in the firm.

KDB will offer its remaining stake for sale in tranches during the course of next year, the commission said.