Saudi government fund to buy Posco E&C for $359m
Saudi Arabia's Public Investment Fund is set to become the second largest shareholder of Posco Engineering & Construction
Posco Engineering & Construction (Posco E&C) announced it is issuing new shares worth $362m (KRW400bn) to a special purpose company set up by Saudi Arabia's Public Investment Fund.
The decision to sell the shares to Public Investment Fund was made on Monday, 1 June, 2015, following a meeting held by Posco E&C's board of directors.
South Korean steelmaker Posco Group, which owns 89.5% of its construction unit Posco E&C, was known to be seeking to offload assets and cope with the steel market downturn, according to Reuters.
The Saudi sovereign fund will be the second largest shareholder of Posco E&C after Posco Group, which will sell 38% of its stake in Posco E&C, as per local daily The Korea Times.
Posco plans to sign an agreement with Public Investment Fund by mid-June 2015.