2018 new cars - Posco, the fourth biggest steelmaker around the globe, and the Hyundai Heavy Industries Co., the biggest shipyard, will purchase stakes in each other to increase participation as well as strengthen defenses against aggressive bids, Posco said yesterday.
The Pohang-based steelmaker is expected to invest 346.6 billion won which amounts US$ 373 million so as to obtain a 1.9 percent risk in Hyundai Heavy held by the Hyundai Mipo Dockyard Co, Posco said in a regulatory declaring. In return, Hyundai Mipo will purchase regarding 872,000 Posco shares.
Lee Ku Taek, the Posco ceo, will be joining worldwide competitors in increasing defenses to guarantee the company's self-reliance as sector consolidation increases. The firm stated last month that 41 percent of its shares were owned by supposed friendly investors which already consist of the Nippon Steel Corp.
The risk purchases are little, but they will contribute to Posco's friendly shareholdings,"said Kim Gyung Jung, an expert at Samsung Stocks Co in Seoul. The offers are? good for Posco's supply as there will be much more demand for it.
In 2006, the Mittal Steel Co. purchased Arcelor SA for US$ 38.3 billion so regarding create the Arcelor Mittal - the largest steel maker worldwide. The action is done to manage the growing worldwide sector in addition to to improve negotiating power with suppliers as well as consumers. Furthermore, India's Tata Steel Ltd acquired Corus Team Plc for $12 billion in January.
Posco shares, the second most important stock on the benchmark Kospi index, got 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the document closing on April 24. The announcements followed the market's close at 3 in the afternoon.
Posco, which is 59 percent possessed by overseas capitalists, counts Nippon Steel, the 2nd largest metalmaker worldwide, as its biggest shareholder as well as ally. On October 20, Nippon Steel and Posco claimed they would invest more than $900 million to enhance risks in each various other. The Japanese steel manufacturer stated last month that it possessed a five percent risk in Posco.
"We are in talks," Posco spokeswoman Ko Min Jin said today, replying to report in the Korea Economic Daily that Posco and also the world's biggest shipyard might take one percent risks in each various other. One percent risk in Posco is worth about 348 billion won or 375 million dollars. An equal stake in Hyundai Heavy is worth around 185 billion won. Hyundai cool air consumption have to have been blowing favorable vibes for the automaker.
Eastern steelmakers like Posco as well as Nippon Steel are quickening to enhance their market price and also take defensive strategies 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 actually increased lately on speculation that the steelmaker, which is had 60 percent by international investors, might come to be a prime target for a hostile takeover attempt by Mittal Steel.
In 2015, the two steelmakers said they would certainly invest greater than $900 million to raise stakes in each various other. South Korea's National Pension plan Fund, the country's largest institutional investor, owns 2.9 percent of Posco. In December, billionaire investor Warren Buffett's Berkshire Hathaway Inc. also disclosed it owns a 4 percent share in Posco.