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Posco to Purchase Daewoo International Shares
09/07/2010 - Posco signed a share sale and purchase agreement with Kamco, the head of Daewoo International Joint Sales Council, on August 30, acquiring approximately 68% of Daewoo International shares totaling 68,681,566 shares. Posco was selected as a preferred bidder this past May.
Posco signed a share sale and purchase agreement with Kamco, the head of Daewoo International Joint Sales Council, on August 30, acquiring approximately 68% of Daewoo International shares totaling 68,681,566 shares. Posco was selected as a preferred bidder this past May 14.
The final undertaking cost is 3372.4 billion KRW, 87.8 billion KRW (2.5%) less than the original offer. Posco plans on paying within its cash assets without any external loans. Share transfer and remaining payments are to be completed by the end of September.
“I am positive that Daewoo International and Posco can create synergy, and Daewoo International’s overseas resource development abilities will play a great role in expanding our business,” said Chairman Joonyang Chung at the signing ceremony.
Posco plans to foster Daewoo International as a global network company centering on the trading, resource development, and new business sectors to reach 2 trillion KRW annual sales by 2018, with a global network of more than 100 overseas subsidiaries.
Based on overseas resource development know-how accumulated from Australia’s Narrabri bituminous coal mine and Ambatobi nickel mine in Madagascar, Daewoo International will support securing raw materials for Posco, and actively secure rare metals such as magnesium, lithium, titanium, and zirconium, so that Posco can grow into a comprehensive global materials provider.
Aside from this announcement, overseas energy exploration projects such as the gas development in Myanmar and Peru and petroleum development in Vietnam will be expanded, Posco says, so related affiliates including Posco E&C and Posco Power can explore various new businesses such as overseas new city development or marine structural businesses.
Posco plans to maximize the value of Daewoo International and speed up the PMI process so that the company can merge with Posco’s corporate culture. Posco assigned Chairman Dong-hee Lee the leader of the PMI process in June.
