Scheduled for approval at the board meeting on the 26th
POSCO Future M will sell its entire stake in P&OChemical, a battery anode material company established as a joint venture with OCI, to OCI.
According to industry sources on the 25th, POSCO Future M will hold a board meeting on the 26th to approve the agenda to sell its entire 51% stake in P&OChemical to OCI. On the same day, OCI will also hold a board meeting to approve the share acquisition agenda. The sale price is reported to be around 50 billion KRW.
P&OChemical is a joint venture established in July 2020 with POSCO Future M and OCI investing 51% and 49% stakes respectively. It produces hydrogen peroxide, an essential material in semiconductor manufacturing processes, and high softening point pitch, a core material for anodes.
Industry insiders expect POSCO Future M to achieve a financial improvement effect of about 150 billion KRW through the 50 billion KRW stake sale proceeds and debt transfer.
POSCO Future M’s sale of its stake in P&OChemical is interpreted as a restructuring through the sale of low-profit businesses. P&OChemical, which is preparing to fully launch its pitch business, recorded a net loss of 67.1 billion KRW last year.
Under the leadership of Chairman Jang In-hwa this year, POSCO Group is undergoing a large-scale restructuring to dispose of businesses that do not align with the group’s strategy or have low profitability, as well as idle assets. Industry experts expect this stake sale to accelerate the group-wide restructuring efforts.
POSCO Group plans to complete more than 97% of the restructuring targets by 2026, expecting a cash inflow effect of about 2.6 trillion KRW. The inflowed cash will be used for reinvestment in core growth businesses and shareholder returns.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
