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STX to spin off shipping unit

Aug. 16, 2023 - 17:10 By Shim Woo-hyun
STX headquarters (STX)

South Korean trading company STX announced Wednesday that the company's board has approved a spinoff of its new shipping and logistics firm, which is tentatively named STX Green Logis, ahead of its stock listing next month.

STX said its shares will be divided in an 80:20 ratio between STX and STX Green Logis. For every 100 shares, shareholders will receive around 23 shares of STX Green Logics and 77 shares of STX. The price of STX Green Logis shares will be decided after the company makes its market debut next month.

After the spinoff, STX will focus on trading raw materials, including secondary battery materials like nickel, while the new entity will deal with shipping and logistics businesses, according to STX.

STX has been increasing its investment in the secondary battery markets. Earlier this month, the company said it signed an agreement to acquire a 20 percent stake in a nickel mine in Indonesia, which is estimated to have a nickel reserve of over 200 million metric tons.

Previously, STX also secured partial ownership of the Ambatovy mine in Madagascar, which is known to have a nickel reserve of 150 million tons.

In June, the company signed a memorandum of understanding with a Chinese lithium company to establish a joint venture in South Korea.

In the meantime, STX Green Logis will focus on shipping and logistics businesses, including its ship chartering business. STX Green Logis also plans to expand its business-to-business trading platform Trollygo.

“The spinoff will allow the two companies to develop specialties in their own areas and increase efficiency,” an official from STX said.