South Korean steel giant buys stake in Thainox

South Korea's Posco, one of the world's largest makers of steel and stainless steel, has agreed in principle to acquire a 15-percent stake in Thainox Stainless from the Thai company's chairman and CEO, Prayudh Mahagitsiri, or his relatives, for Bt2 billion.

Thainox told the Stock Exchange of Thailand (SET) Wednesday that Prayudh or his group will sell 1.2 billion Thainox shares to Posco at a price of Bt1.67 each.

"The purchase price was agreed on the basis of the net asset value per share, as shown in financial statements for the nine-month period ending September 30, 2006, which have been reviewed by the Company's auditors," Thainox said.

The deal is subject to the approval of Posco's board of directors, and is expected to take place within 60 days.

According to the SET's data, as of April 7, 2006, Prayudh held 1.94 billion shares or 24.20 per cent of Thainox; Lakewood Land, a firm wholly-owned by Prayudh's family, owned 2.55 billion shares or 31.87 per cent; Chalermchai, Prayudh's son, owned 429 million shares or 5.36 per cent; Usanee, Prayudh's daughter, owned 183.26 million shares or 2.29 per cent; and Lakewood Country Club, another family firm, owned 116.58 million shares or 1.46 per cent.

Thainox's stock rose sharply Wednesday in response to the announcement and ended up 14.6 per cent at Bt1.41.

The Nation