2017 prius v - Posco, the fourth largest steelmaker around the world, as well as the Hyundai Heavy Industries Co., the greatest shipyard, will certainly get stakes in each other to increase cooperation and enhance defenses versus hostile quotes, Posco stated yesterday.
The Pohang-based steelmaker is expected to spend 346.6 billion won which is equivalent to US$ 373 million so regarding acquire a 1.9 percent risk in Hyundai Heavy held by the Hyundai Mipo Dockyard Carbon monoxide, Posco stated in a regulative filing. In return, Hyundai Mipo will acquire concerning 872,000 Posco shares.
Lee Ku Taek, the Posco chief executive officer, will certainly be joining worldwide rivals in improving defenses to make certain the firm's freedom as sector consolidation accelerates. The firm said last month that 41 percent of its shares were possessed by so-called friendly capitalists which currently consist of the Nippon Steel Corp.
The stake acquisitions are tiny, yet they will contribute to Posco's friendly shareholdings,"claimed Kim Gyung Jung, an analyst at Samsung Securities Co in Seoul. The bargains are? great for Posco's stock as there will be more need for it.
In 2006, the Mittal Steel Co. acquired Arcelor SA for US$ 38.3 billion so as to develop the Arcelor Mittal - the biggest steel manufacturer worldwide. The step is done to cope with the growing worldwide sector along with to boost negotiating power with vendors as well as clients. Additionally, India's Tata Steel Ltd purchased Corus Group Plc for $12 billion in January.
Posco shares, the 2nd most beneficial supply on the benchmark Kospi index, obtained 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the record closing on April 24. The news came after the market's close at three in the afternoon.
Posco, which is 59 percent possessed by overseas financiers, counts Nippon Steel, the second biggest metalmaker worldwide, as its biggest investor and ally. On October 20, Nippon Steel and Posco said they would certainly invest more than $900 million to enhance stakes in each other. The Japanese steel manufacturer said last month that it owned a five percent stake in Posco.
"We are in talks," Posco spokeswoman Ko Minutes Jin stated today, replying to report in the Korea Economic Daily that Posco and also the world's biggest shipyard may take one percent risks in each other. One percent stake in Posco is worth about 348 billion won or 375 million bucks. An equivalent risk in Hyundai Heavy is worth roughly 185 billion won. Hyundai chilly air consumption should have been blowing favorable feelings for the automaker.
Eastern steelmakers like Posco as well as Nippon Steel are accelerating to boost their market values as well as take defensive strategies versus possible takeovers after Mittal Steel Co.'s $38.3 billion takeover this year of its greatest rival, Arcelor SA. Posco's share rate has actually enhanced just recently on speculation that the steelmaker, which is owned 60 percent by international financiers, might end up being a prime target for a hostile requisition effort by Mittal Steel.
In 2015, both steelmakers said they would certainly spend more than $900 million to increase risks in each various other. South Korea's National Pension Fund, the nation's largest institutional capitalist, has 2.9 percent of Posco. In December, billionaire investor Warren Buffett's Berkshire Hathaway Inc. likewise disclosed it has a 4 percent share in Posco.