STX Companies Jump on Report STX OSV Sale Near: Seoul Mover
STX Pan Ocean Co. (028670) climbed the most in four years in Seoul trading, leading gains by affiliates, after MoneyToday said the shipping company’s parent was close to selling a unit that makes offshore vessels.
Pan Ocean surged 15 percent, the most since Dec. 15, 2008, to close at 3,255 won. STX Offshore & Shipbuilding Co. (067250) rose 7.2 percent and holding company STX Corp. advanced 4.1 percent.
STX Group may announce the sale of its 51 percent stake in vessel-maker STX OSV Holdings Ltd. (SOH) to Fincantieri SpA “soon,” MoneyToday said, citing unidentified officials familiar with the deal. The report was posted on the news provider’s free website today after being published on a subscription service Dec. 4. The sale may raise about 800 billion won ($743 million), the article said.
“Bets that the group’s financial risks will decline with asset sales are driving shares up nicely today,” said Kang Dong Jin, a Seoul-based analyst at HMC Investment Securities Co.
STX Group said in January that it may sell the OSV stake as it struggles with debts and a collapse in ship orders caused by a global glut of vessels and slumping cargo rates. The group declined to comment on the MoneyToday report when contacted by Bloomberg News today.
Bloomberg reported the talks with Fincantieri in April. The group agreed to sell 43 percent of its power-plant unit to Tokyo-based Orix Corp. (8591) in October. The group is aiming to raise a total of 2.5 trillion won from asset sales.
STX Engine Co. rose 6.4 percent today, while Seoul’s benchmark Kospi Index was up 0.4 percent. OSV fell 0.7 percent to S$1.445 at 2:30 p.m. in Singapore.
Pan Ocean also gained after Shinyoung Securities Co. said today the company may make an operating profit next year, its first since 2010.