POSCO To Sell 38% E&C Shares To PIF Of Saudi Arabia

(RTTNews) - Korean steel producer POSCO (PIDD.L, PKX ) has signed a Share Purchase Agreement or SPA with the Public Investment Fund or PIF of Saudi Arabia for sale of POSCO E&C shares. The transaction brings in 1.24 trillion Korean won of foreign investment into Korea.

On June 15, POSCO Chairman Kwon Oh-joon and PIF Secretary General Abdulrahman M. Al Mofadhi officially signed the SPA for 38 percent stake in POSCO E&C at POSCO E&C's headquarters in Incheon Songdo, Korea.

The investment gives PIF a right to appoint two board members in POSCO E&C's board. It will enable POSCO E&C to achieve its goals of improving its capital structure and establishing a transparent management system adhering to global standards.

The two companies also intend to establish a Joint Venture in Saudi Arabia and jointly bid for key national construction projects in sectors such as railways, urban infrastructure, hotels and architectural projects.