STX Heavy Industries Co., Ltd. announced that it expects to receive KRW 48.85 billion in funding from KB Kookmin Bank, Investment Arm
November 01, 2018
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STX Heavy Industries Co., Ltd. (KOSE:A071970) announced a private placement of 19,540,000 common shares at a price of KRW 2,500 per share for gross proceeds of KRW 48,850,000,000 on November 2, 2018. The shares will be issued through third party allotment method. The shares will be issued at par. The transaction will include participation from PT No. 2 Limited Company for 18,563,000 shares and KB Kookmin Bank, Investment Arm for 977,000 shares. Post the closing of the transaction, the shares will increase from 8,541,731 to 28,086,986. The payment date is November 22, 2018. 50% of the shares issued will be locked up at the Korea Securities Depository for a year from the effective date of the new shares and the balance 50% shares for six months from the date of listing of the new shares. The transaction has been approved by the board of the directors.
STX Heavy Industries Co., LTD is a Korea-based company mainly engaged in the manufacture of ship engine components. The Company operates its business mainly through engine component segment and shipbuilding material segment. Its engine component segment mainly produces diesel engine components, including cylinder blocks, crank shafts, cylinder liners and turbochargers, cylinder heads, pistons, cam shafts and connecting rods, which are used in ships and power generators. Its shipbuilding material segment provides cargo oil pump systems, liquefied natural gas carrier (LNGC) insulation boxes, heavy fuel oil (HFO) supply system units and purifier units. On December 3, 2013, KDB and KOREA FINANCE CORPORATION respectively subscribed 15.99% and a 3.90% stake in the Company. After the private placement, KDB and KOREA FINANCE CORPORATION became the Company's top shareholder, replacing STX Engine Co,.Ltd and four related parties, which held a combined 61.94 pct stake in the Company.