POSCO, the South Korean steelmaker, announced today, August 30, it signed a deal with Korea Asset Management Corp. (KAMCO) to acquire Daewoo International for KRW 3.37 trillion ($2.8 billion), the Maeil Business reported.
The article states -
The purchase amount, which was 2.54% lower than POSCO offered originally, corresponds to 68% of outstanding shares or 68,681,566 shares. POSCO should pay the amount by the end of next month.
The deal also allows KAMCO to recover public money worth 1.75 trillion won injected into the trading company since it went bankrupt in 1999.
The acquisition will bring about a momentum for POSCO to diversify its business and explore energy resources overseas.
Since Chief Executive Chung Joon Yang took office, the steelmaker has accelerated its advance into developing iron ore mines abroad. POSCO expects Daewoo International will create a synergy while it will be doing so in the future.
Daewoo International has 94 business operations in 58 countries, trading with 180 countries. More than 97% of sales are related to export. A natural gas project in Myanmar operated by Daewoo International will see commercial production from 2013 and a nickel mine in Madagascar will also begin production from next year.
Source: Maeil Business
No related posts.
