2018 volkswagen gti - Posco, the 4th largest steelmaker around the world, and also the Hyundai Heavy Industries Co., the largest shipyard, will certainly get risks in each various other to boost participation and reinforce defenses versus aggressive bids, Posco said the other day.
The Pohang-based steelmaker is expected to spend 346.6 billion won which amounts US$ 373 million so as to acquire a 1.9 percent stake in Hyundai Heavy held by the Hyundai Mipo Dockyard Carbon monoxide, Posco said in a regulative filing. In return, Hyundai Mipo will acquire regarding 872,000 Posco shares.
Lee Ku Taek, the Posco chief executive officer, will be signing up with worldwide competitors in boosting defenses to make certain the firm's freedom as market combination increases. The firm claimed last month that 41 percent of its shares were owned by so-called pleasant capitalists which already consist of the Nippon Steel Corp.
The stake purchases are small, but they will certainly add to Posco's friendly shareholdings,"said Kim Gyung Jung, an expert at Samsung Securities Co in Seoul. The deals are? helpful for Posco's stock as there will be extra demand for it.
In 2006, the Mittal Steel Co. bought Arcelor SA for US$ 38.3 billion so as to create the Arcelor Mittal - the biggest steel maker worldwide. The move is done to cope with the expanding global sector in addition to to boost bargaining power with distributors as well as clients. In addition, India's Tata Steel Ltd purchased 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 statements followed the marketplace's close at three in the mid-day.
Posco, which is 59 percent had by abroad investors, counts Nippon Steel, the 2nd biggest metalmaker worldwide, as its biggest investor and ally. On October 20, Nippon Steel and Posco stated they would invest greater than $900 million to raise stakes in each other. The Japanese steel manufacturer stated last month that it had a 5 percent stake in Posco.
"We remain in talks," Posco spokeswoman Ko Min Jin stated today, replying to report in the Korea Economic Daily that Posco as well as the world's largest shipyard may take one percent risks in each various other. One percent stake in Posco is worth concerning 348 billion won or 375 million dollars. A comparable risk in Hyundai Heavy is worth about 185 billion won. Hyundai cold air intake must have been blowing positive feelings in favor of the automaker.
Asian steelmakers like Posco and also Nippon Steel are speeding up to improve their market price as well as take protective methods against possible takeovers after Mittal Steel Co.'s $38.3 billion takeover this year of its biggest competitor, Arcelor SA. Posco's share cost has actually increased lately on supposition that the steelmaker, which is had 60 percent by international capitalists, may become a prime target for a hostile takeover effort by Mittal Steel.
In 2015, both steelmakers claimed they would certainly invest more than $900 million to enhance stakes in each other. South Korea's National Pension plan Fund, the nation's biggest institutional financier, owns 2.9 percent of Posco. In December, billionaire investor Warren Buffett's Berkshire Hathaway Inc. also revealed it owns a 4 percent share in Posco.