POSCO Holdings Sells Stakes in POSCO International and DX…Secures 2.5 Trillion Won for Investment

POSCO Holdings Sells Stakes in POSCO International and DX…Secures 2.5 Trillion Won for Investment

POSCO Holdings will secure 2.48 trillion won in investment funds by selling some shares of POSCO International and POSCO DX.

POSCO Holdings announced on the 7th that its board of directors resolved to dispose of 36,434,963 shares of POSCO International it holds. The disposal amount is 2.0184 trillion won (2,018,496,950,000 won), at 55,400 won per share.

It also decided to sell 23,385,917 shares of POSCO DX, worth 481.74 billion won (481,749,890,000 won). The price per share was set at 20,600 won.

The scheduled disposal date for the shares of both companies is September 7.

POSCO Holdings stated the purpose of the disposal as "securing strategic investment funds to resolve the holding company discount and enhance corporate value."

Upon completion of the disposal, POSCO Holdings' stake in POSCO International will decrease from 70.71% to 50.00%, and its stake in POSCO DX will decrease from 65.38% to 50.00%. However, its status as the largest shareholder of both companies will be maintained.

POSCO Holdings explained that it plans to enter into a Price Return Swap (PRS) contract for both stocks. The contract period is 3 years.

PRS is an over-the-counter derivative in which a company enters into a contract with a financial institution using its held shares as the underlying asset and settles the difference based on stock price fluctuations at the time of settlement.