Consortium gets the nod to acquire STX EnergyA consortium of GS Holdings and LG International was selected as the preferred bidder for STX Energy, a private power generator that was previously owned by cash-strapped STX Group.
The consortium said yesterday it will finalize the details of the acquisition and will sign the contract after additional negotiations with Japan’s Orix, the largest shareholder of STX Energy.
The consortium competed with Posco Energy and Samtan to acquire the company. The consortium will buy 72 percent of the 96.35 percent stake held by Orix, bringing the deal to about 600 billion won ($570 million).
GS said it wants to expand its business portfolio by buying STX Energy, which has a coal thermal power plant. The holding company of the nation’s eighth-largest conglomerate said it can maximize the value of STX Energy and efficiently manage the company, using the experience of its energy affiliates GS EPS and GS Power.
The company also looks to create synergy with LG International by using its solid overseas resource network for a stable supply of coal. GS Group spun off from LG Group in 2005.
“By acquiring STX Energy, our business portfolio is getting diverse, adding to our existing LNG and biomass power generation business,” GS said in a release. “It will be good opportunity as a future growth engine of the group.”
By acquiring STX Energy and with help from LG International, GS believes it can take a leading role in the nation’s private power generation industry. STX Energy currently operates two combined heat and power plants at industrial complexes in Gumi, North Gyeongsang, and Banwol, Gyeonggi, while it is building a 1,190 megawatt thermal power plant in Donghae, Gangwon, that is scheduled to go online in 2016.
It also wants to take advantage of mines that STX Energy owns in the United States, Canada, Ireland and Uzbekistan.
BY JOO KYUNG-DON [firstname.lastname@example.org]