Posco shores up liquidity by selling big capsPosco, Korea’s leading and the world’s third-largest steelmaker, sold shares in three Korean firms for a combined 583 billion won ($520 million) as part of efforts to improve the company’s financial status, industry sources said yesterday.
The company sold about 2.34 million shares in SK Telecom, the country’s leading mobile carrier, for 321 billion won via block sales before the market opening, 3.86 million shares in KB Financial Group for 163 billion won and 2.23 million shares in Hana Financial Group for 99 billion won, according to the sources.
Posco CEO Chung Joon-yang said earlier the steelmaker will either list more of its affiliates on the local stock market or sell some of its stakes in local firms, as it seeks to improve its financial footing.
Posco’s earnings in 2011 dropped 11.6 percent from a year earlier due mainly to low steel prices and increased costs of raw materials.
Net profit reached 3.7 trillion won on a consolidated basis in 2011, compared with a profit of 4.19 trillion won a year earlier. Yonhap
More in Industry
Doing the robot
Export growth of 6% seen by KITA next year
Big companies, fearing the worst, scramble for cash
Hyundai unveils one-size-fits-all electric vehicle module