STX Group finalizes sale of STX OSV to Fincantieri SpA

South Korea's STX Group has finalized the decision to sell-off its stakes in STX OSV, the world's biggest maker of offshore support vessels, in its efforts to improve financial structure.

STX Group announced Friday that the Italian-state controlled shipbuilder Fincantieri SpA agreed to buy a controlling stake in STX OSV upon the approval of Singapore Securities Industry Council and board of directors. Under the agreement, Fincantieri SpA pays S$1.22 a share in cash for STX Group's 50.75 percent stake. Through the deal, STX will raise a fund worth 768 billion won ($714 million) including dividends from the stake.

"The fund acquired from the deal will be spent to improve the company's finance and business management," noted an official of STX.

Market analysts anticipated that the successful disposal will resolve problems regarding STX's balance sheet. STX has recently raised 360 billion won by selling some of its stakes in STX Energy to Japan's Orix Group. When including the sale price of STX OSV, STX will secure a total of 1.12 trillion won through the disposal deal.

STX plans to further its work to restructure the company's balance sheet as initially planned including selling off STX Pan Ocean, raising funds for STX Dalian, pursuing merger of STX Heavy Industries and STX Metal and selling off its stakes in overseas resources development units.

[Written by Jae-man Ko - Jieun Lee/ edited by Soyoung Chung]

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