KG Group has become the biggest shareholder of Dongbu Steel as its joint venture KG Steel took control over its newly issued 40 percent stake, according to a regulatory filing Sept. 2.
The steelmaker -- which got a new name KG Dongbu Steel -- said KG Steel, held equally by KG Corp., KG Eco Technology Services and KG Chemical, took over 40 million new shares issued through a third-party allocation, which are valued at 210 billion won ($173.2 million).
State-run Korea Development Bank, formerly the largest shareholder of Dongbu Steel, holds a 13.28 percent stake as a result of the new share issuance. Prior to the news, KDB owned a 39.17 percent stake.
KG Group Chairman Kwak Jae-sun speaks at an inaugural ceremony as he was appointed chairman of KG Dongbu Steel on Sept. 2.
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On Aug. 30, Dongbu Steel issued 72 million shares and raised 360 billion won from the KG-led consortium. In the meantime, it issued 24.2 million shares to fetch 605 billion won from KDB-led creditors.
This came after the KG-led consortium, comprising KG and Cactus Private Equity, was picked as the preferred bidder for the Dongbu Steel acquisition in April. Dongbu decided in a June board meeting to raise capital through the issuance of new stock.
By Son Ji-hyoung (email@example.com)