The South Korean government plans to raise KRW 1.27tn (USD 1.11bn) by selling part of its stake in the Industrial Bank of Korea (IBK), reported Edaily.
The unsourced report claimed that the government has drafted the amount as part of non-tax income this year.
The government holds a 65.13% stake in IBK, the listed South Korea-based lender, out of which, it plans to sell a 14.13% holding and keep the rest to retain management rights, the report noted.
According to the report, the government is believed to have held talks with financial advisor Samsung Securities, to find the right time and conditions for the sale.
Though details of the discussion were not known, the report cited an unnamed insider at South Korea’s Ministry of Strategy and Economy as saying that shares in IBK were trading at over KRW 21,000 last year, and the expected sell price should be at that level. Shares in IBK closed at KRW 13,350 at the end of yesterday’s, 3 March, trading.
The sale is expected to take place via a block deal to institutional investors, in order to minimise impact on IBK’s share price, the report claimed.
According to IBK’s 2009 Earnings Release, the company had net income of KRW 710.5 billion in 2009, down from KRW 767 billion in 2008.
(Source: Edaily)
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