Saudi Fund Buys $1.1 Billion Stake in Posco Engineering UnitStephen Stapczynski
The Public Investment Fund of Saudi Arabia agreed to pay 1.24 trillion won ($1.1 billion) for a 38 percent stake in Posco’s engineering unit.
The agreement to buy the stake in Posco Engineering & Construction Co. will give the Saudi fund the right to appoint two board members, Posco, South Korea’s biggest steelmaker, said today in a statement. The Saudi fund will also benefit through the transfer of technology from Posco E&C.
The deal, nine months in the making, was first announced in March when the companies signed a memorandum of understanding.
Posco, formerly one of only four private firms in the nation with a AAA rating, said proceeds from the deal will used to improve the company’s capital structure and credit rating.
PIF is one of several investment bodies the kingdom uses to invest its oil wealth. The fund holds stakes in several listed Saudi companies, including Saudi Basic Industries Corp. one of the world’s biggest petrochemical makers.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.