STX Corp to Be Sold to Chinese Firm

December 28, 2017

 AFC Korea,  a subsidiary of Chinese private equity fund AFC, has been selected as the preferred bidder for cash-strapped STX Corp, according to a Business Korea report.

AFC Korea has reportedly offered a price tag above 70 billion won (US$65.62 billion) for an 86.28 percent stake owned by STX creditors. STX creditors include Korea Development Bank (KDB), which holds a 39.59 percent stake, and NongHyup, which has 10.07 percent. 
Image: STX Corporation
Image: STX Corporation
AFC beat three other potential bidders including Pan Ocean, which was once a part of STX, and textile manufacturer Global SAE-A.  
According to Business Korea report, CEO of the company Hong Ra-jung  is raising 100 billion won (US$93.23 million) worth of project fund to acquire STX. More than half of the fund was financed by domestic mid-size companies and institutions as financial investors.
Earlier, the council of creditors of STX, including the KDB, decided to sell 15,237,051 common shares and 1,271,000 convertible shares, or 86.28 percent of the ownership including convertible shares, and carried out a binding bid on the 21st.

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