Gov"t to Sell 30% Stake in Tobacco Corp.

The government has decided to sell a 30 percent stake in Korea Tobacco & Ginseng Corporation (KTGC).
The government will list 15 percent of KTGC on the domestic stock market within the third quarter and sell the remaining 15 percent on overseas stock markets, including the New York Stock Exchange, as depository receipts (DRs) during the fourth quarter of this year.
The rest of the government's stake and those shares held by banks will be sold next year.
A source in the Ministry of Planning & Budget said on July 8, 'Regarding the privatization of state-run companies, we will stick to our original guidelines. But the timing, method, and scale of the sale can be adjusted, in consideration of the economic situation.
According to this policy, the privatization schedule for such state-run giants like Korea Electric Power Corporation (KEPCO), Korea Heavy Industries & Construction Company and Pohang Iron & Steel Company (POSCO) have been delayed for two to three months.
KEPCO's sale of powerplants in Anyang and Puchon was rescheduled to October from August and the announcement of Korea Gas Corporation's sale was postponed to next month from the first half of this year. POSCO's DRs sale in New York, which was scheduled to proceed during June, also was delayed to this month.
Kang Joo-an : jooan@joongang.co.kr