POSCO has raised approximately 670 billion won (about $670 million) by selling its entire stake in Woori Financial Group through a block deal.
On October 1, POSCO announced that it sold 20.28 million shares (about 2.7%) of Woori Financial Group for 676.5 billion won, with a sale price set at 33,360 won per share.
Previously, in 2022, POSCO Holdings transferred 20.8 million shares of Woori Financial Group to POSCO to resolve restrictions under fair trade laws that limit the activities of holding companies. Since general holding companies cannot own shares in financial firms, this transfer was necessary. Considering POSCO's acquisition cost of 261.6 billion won, the block deal is expected to yield a profit of about 160%.
This sale of Woori Financial Group shares is seen as part of POSCO Holdings' recent efforts to enhance corporate value. The company has announced plans to reduce its stake in major listed subsidiaries to around 50% by the end of 2027 to eliminate holding company discounts.
To achieve this, POSCO secured funds through a Private Placement of Shares (PRS) in August, which will be used for investments in strategic resources, energy, new business areas, and share buybacks to enhance shareholder value.
A POSCO official stated, "The proceeds from the sale will be utilized for domestic and international growth investments."
* This article has been translated by AI.
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