Share price of STX Heavy Industries surges 30 percent Friday morning

The strong rally came after local media reported that Korea Shipbuilding and Offshore Engineering (KSOE) joined the bid to acquire 47.81 percent of STX Heavy Industries.

A car carrier built by Korea Shipbuilding & Offshore Engineering. [KOREA SHIPBUILDING & OFFSHORE ENGINEERING]

The share price of STX Heavy Industries, a ship engine maker, skyrocketed by nearly 30 percent on Friday morning.

The strong rally came after local media reported that Korea Shipbuilding and Offshore Engineering (KSOE) joined the bid to acquire 47.81 percent of STX Heavy Industries from its largest shareholder Pinetree Partners, a local private equity firm.

STX Heavy Industries’ shares jumped 26.39 percent to 7,280 won ($5.60) at 10:25 a.m. on the Kospi bourse, after soaring 29.86 percent to reach 7,480 won right after the market opening.

KSOE is the intermediate sub-holding company of HD Hyundai, formerly Hyundai Heavy Industries Holdings.

Aside from KSOE, HSD Engine and an overseas company participated in the bidding, submitting a letter of intent to buy STX’s controlling share.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]