GS Holdings Corp., which controls South Korea’s second-biggest oil refiner, and LG International Corp. agreed to buy a combined 71.9 percent stake in STX Energy Co. for 630.7 billion won ($598 million).
GS Holdings will pay financial services company Orix Corp. 564.9 billion won for a 64.4 percent stake in South Korea-based STX Energy, which operates power plants, it said in a statement today. LG International, a Seoul-based commodity trader, will buy 7.5 percent for 65.8 billion won.
Orix acquired as much as 49.9 percent of STX Energy in December 2012 for an undisclosed amount. In July, the Japanese company increased its holding in STX Energy by acquiring more shares from parent STX Group “to stabilize its management,” Orix said in a separate statement today. Orix will continue to hold 25 percent of STX Energy after the sale to GS Holdings and LG International.
“In addition to transferring controlling interest of STX Energy to its new partner the GS-LG consortium, Orix will continue to support the improvement of corporate value as a shareholder,” the financial services company said in the statement.
GS Holdings rose 0.2 percent to 56,800 won at the close in Seoul today, while LG International gained 3.5 percent to 28,500 won. GS Holdings has declined 21 percent this year and LG International 41 percent, compared with a 0.3 percent gain in the benchmark Kospi Index. Orix rose 2.1 percent in Tokyo today.