POSCO is likely to sell a 24% stake in Kyobo Life held by Daewoo International, reported Korea Economic Daily.
The report cited industry sources as saying the South Korean steelmaker has decided to sell the stake once it takes control of Daewoo International.
The sources said POSCO does not believe the stake would create synergy with the life insurance industry in future. The report estimated the 24% stake in Kyobo Life to be worth KRW 850bn (USD 750m).
A related report in Yonhap News cited an unspecified insurance industry source as saying that Kyobo Life may acquire the stake as treasury stock, or Hanwha could be a buyer for the stake.
As reported earlier, POSCO was selected as the preferred bidder for a controlling stake in Daewoo International last Friday.
See previous post “Korea’s Life Insurance Market to Grow to World’s Fifth largest – Aviva CEO” for more information about Korea’s insurance market.
(Sources: Korea Economic Daily, Yonhap News)
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