STX PO / STX OSV

STX PO / STX OSV: STX Group said it is in talks with domestic and international investors about selling its controlling stake in STX PO, South Korea’s largest dry-bulk ship operator, as it tries to raise 2.5 tr won (US$2.3 b) from asset sales to pare debts. The group didn’t elaborate on the potential buyers for the 36% stake, which is worth ~US$250m at market prices. STX PO surged by the 15% daily limit in Seoul trading yday. The counter is +4% at the open in Seoul trading today. Samsung Securities says the decision to sell stakes in STX PO should eb positive for shares that have traded at “massive discount” on industry sluggishness, group related risks. Believes downside for minority STX PO holders “very limited”. Separately, STX Group also said it’s in the final stage of talks to sell its 51% in STX OSV, the world’s biggest maker of oil-rig support vessels. Recall, Italian shipbuilder Fincantieri SpA is said to be among final bidders. Previously, shares in STX OSV had tended to exhibit upside volatility whenever the stake sale issue came into play.