Posco to sell construction stake to Saudi fund
A deal for a 30% sell off of Posco Engineering & Construction to Saudi Arabia's Public Investment Fund is expected to be signed by end of this month or next month
Posco is set to sell a stake of at least 30% in unlisted Posco Engineering & Construction Co Ltd for around 1 trillion won ($920 million) to Saudi Arabia's Public Investment Fund, a South Korean newspaper reported on Monday.
A deal is expected to be signed by end of this month or sometime next month, the Chosun Ilbo reported, citing unidentified industry sources.
A spokesman for Posco Group said a stake sale was being considered but nothing has been decided.
Posco is a multinational steel-making company headquartered in Pohang, South Korea. It had an output of 39.1 million tonnes of crude steel in 2011, making it the world's fourth-largest steelmaker by this measure. In the same year, it was the world's largest steel manufacturing company by market value.
Posco currently operates two integrated steel mills in South Korea, in Pohang and Gwangyang. In addition, Posco operates a joint venture with US Steel, USS-Posco, which is located in Pittsburg, California.