POSCO not to bid for stake in Woori Bank

[THE INVESTOR] South Korea’s steel maker POSCO has decided not to bid for a stake in Woori Bank which the government is planning to privatize this year, according to the company’s official on Sept. 12.

“We’ve concluded that we won’t participate in the stake sale of Woori Bank following a feasibility review,” a POSCO official said.

Speculation was rampant last week that the steelmaker was interested in buying a 4 percent stake in the state-own bank as the government is pushing for another sale after four failed attempts since 2010. POSCO had not confirmed its plan to make an offer.

“There appear to be no benefits that will accrue by acquiring the stake. POSCO is also in the process of the disposal of nonessential assets,” the official said.

Hit by rising debts and years of profit declines, POSCO is undergoing restructuring since 2014.

The controlling stake of Woori Bank’s 51.8 percent is currently held by Korea Deposit Insurance Corp., which is looking to sell off 30 percent, which will be divided into 4-8 percent stakes.

Meanwhile, Life insurers like Kyobo are also eyeing the acquisition deal, as are major institutional investors such as Mirae Asset Group, National Pension Service and Korea Post.

All bidders must submit a letter of intent by Sept. 23 for the bid.

By Park Han-na (hnpark@heraldcorp.com)