2017 mini cooper countryman - Posco, the fourth biggest steelmaker around the globe, and the Hyundai Heavy Industries Co., the most significant shipyard, will acquire risks in each other to enhance participation as well as enhance defenses against aggressive quotes, Posco claimed the other day.
The Pohang-based steelmaker is anticipated to invest 346.6 billion won which is equivalent to US$ 373 million so as to acquire a 1.9 percent risk in Hyundai Heavy held by the Hyundai Mipo Dockyard Carbon monoxide, Posco said in a regulative filing. In return, Hyundai Mipo will certainly acquire regarding 872,000 Posco shares.
Lee Ku Taek, the Posco president, will certainly be joining global opponents in improving defenses to ensure the firm's independence as sector combination increases. The company claimed last month that 41 percent of its shares were had by supposed friendly investors which already include the Nippon Steel Corp.
The risk purchases are tiny, however they will certainly add to Posco's friendly shareholdings,"said Kim Gyung Jung, an expert at Samsung Stocks Co in Seoul. The offers are? helpful for Posco's supply as there will be extra need for it.
In 2006, the Mittal Steel Co. bought Arcelor SA for US$ 38.3 billion so regarding create the Arcelor Mittal - the largest steel manufacturer worldwide. The relocation is done to handle the expanding international market along with to improve bargaining power with providers as well as clients. Furthermore, India's Tata Steel Ltd acquired Corus Group Plc for $12 billion in January.
Posco shares, the 2nd most valuable stock on the benchmark Kospi index, got 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the record closing on April 24. The news followed the market's close at 3 in the afternoon.
Posco, which is 59 percent possessed by overseas investors, counts Nippon Steel, the second biggest metalmaker worldwide, as its most significant shareholder and also ally. On October 20, Nippon Steel and also Posco stated they would invest more than $900 million to boost stakes in each various other. The Japanese steel maker claimed last month that it possessed a five percent risk in Posco.
"We are in talks," Posco spokesperson Ko Min Jin claimed today, responding to report in the Korea Economic Daily that Posco and the globe's largest shipyard might take one percent risks in each other. One percent risk in Posco deserves about 348 billion won or 375 million bucks. An equal stake in Hyundai Heavy is worth about 185 billion won. Hyundai cool air intake need to have been blowing favorable feelings in favor of the automaker.
Eastern steelmakers like Posco as well as Nippon Steel are speeding up to improve their market values as well as take defensive approaches against possible requisitions after Mittal Steel Co.'s $38.3 billion requisition this year of its greatest competitor, Arcelor SA. Posco's share rate has increased lately on conjecture that the steelmaker, which is owned 60 percent by foreign capitalists, might end up being a prime target for a hostile takeover attempt by Mittal Steel.
Last year, the two steelmakers claimed they would certainly spend greater than $900 million to boost risks in each various other. South Korea's National Pension Fund, the country's largest institutional capitalist, owns 2.9 percent of Posco. In December, billionaire financier Warren Buffett's Berkshire Hathaway Inc. likewise disclosed it owns a 4 percent share in Posco.