POSCO Holdings to Divest 2.5 Trillion Won in Shares Across Two Affiliates
Key Takeaways
- •POSCO Holdings plans to sell a combined 2.5 trillion won ($1.76 billion) in shares from affiliates POSCO International and POSCO DX, with transactions scheduled for September 7.
- •The company will raise 2 trillion won from POSCO International shares and 500 billion won from POSCO DX shares while retaining 50 percent ownership in each entity.
- •Proceeds from the divestment are intended to secure investment capital and enhance corporate value amid government-led pressure on Korean conglomerates to improve capital efficiency.
- •POSCO Holdings is channeling resources into future growth areas such as rechargeable battery materials, lithium extraction, and hydrogen-based steelmaking technologies.
- •The planned sales align with the Korea Value-Up program, a government initiative encouraging conglomerates to boost corporate valuations under holding company structures.
POSCO Holdings, South Korea's leading steelmaker, announced Friday its plan to sell a combined 2.5 trillion won ($1.76 billion) worth of shares in two of its affiliates, according to a regulatory filing.
The company intends to divest 2 trillion won worth of shares in POSCO International and 500 billion won in POSCO DX. The transactions are scheduled to take place on September 7.
POSCO Holdings stated that the share disposals are aimed at securing investment funds and enhancing overall corporate value. Following the divestment, the steelmaking giant will retain a 50 percent stake in each of the two affiliates.
The planned divestments come as South Korean conglomerates face increased investor and regulatory pressure to improve capital efficiency under their holding company structures, part of a broader government-led push to boost corporate valuations known as the Korea Value-Up program. POSCO Holdings has been directing capital toward future growth areas including rechargeable battery materials, lithium extraction, and hydrogen-based steelmaking, as the global steel industry contends with decarbonization requirements and persistent overcapacity centered in China.
POSCO Holdings serves as the parent company of the POSCO Group, one of the world's largest steel-producing conglomerates. POSCO International operates as the group's trading and energy arm, while POSCO DX focuses on digital transformation and IT services.
The announcement was reported by Yonhap News Agency.
