Posco sells $743 million of treasury shares

The shares are sold to a small group of investors through a club deal at a 4.76% discount.
Posco’s American depositary receipts held up well in New York trading after the deal was announced, falling just 2.6% to $76.04.
Posco’s American depositary receipts held up well in New York trading after the deal was announced, falling just 2.6% to $76.04.

Korean steel manufacturer Posco on Wednesday raised W807.3 billion $743 million by selling a quarter of the treasury shares it holds on its own balance sheet. The shares were sold to a small group of international investors through a club deal that was flagged to the broader market only after it was completed.

The deal was done without a term sheet but, according to an announcement sent to investors in the early evening Hong Kong time, it was priced at W323,800 per share. That translates into a 4.76% discount to Wednesday’s close of W340,000 slightly below the maximum 5% discount allowed for sales of treasury shares in Korea.

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