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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] POSCO Holdings will sell all of its remaining shares in Nippon Steel, completing its full exit from the Japanese steelmaker, according to an exclusive report by Maeil Business Newspaper. The company is expected to secure more than KRW 200 billion in additional cash through the sale, accelerating its divestment of non-core assets.
POSCO Holdings has begun institutional bookbuilding to dispose of 39.2 million shares in Nippon Steel via a block deal, the report said. The offering totals JPY 24.2 billion (approximately KRW 227 billion) with a discount of 1.2%–1.8% to Nippon Steel’s closing price of JPY 624 on the 25th. Bank of America (BofA) and UBS have been appointed as joint bookrunners.
This follows POSCO Holdings’ sale in September, when it divested roughly half of its stake and raised JPY 25.3 billion (around KRW 239 billion), also reported by Maeil Business Newspaper.
The latest sale was arranged through mutual agreement, and the companies will continue to maintain their strategic partnership, despite ending their cross-shareholding structure.
POSCO and Nippon Steel first established reciprocal shareholdings in 1998 during POSCO’s privatization, expanding the arrangement in 2006. Nippon Steel disposed of all its POSCO Holdings shares last year—worth approximately KRW 1.1 trillion—prior to its bid to acquire U.S. Steel.
Under Chairman Jang In-hwa, POSCO Holdings has accelerated the sale of non-core assets as it ramps up investment in new growth sectors such as battery materials (lithium, nickel) and hydrogen.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
