POSCO International will invest about 530 billion won in its U.S. subsidiary to pursue the acquisition of U.S. shale gas assets.
On the 14th, POSCO International disclosed that its subsidiary POSCO International E&P USA decided on a rights offering worth 532.9 billion won.
The entity is wholly owned by POSCO International, and POSCO International will contribute the entire 532.9 billion won to this entity.
The newly issued shares are 2,000 common shares, with an issue price of about 2.6 billion won per share. The size of the rights offering amounts to 6.82% of POSCO International's equity on a consolidation basis.
On the same day, POSCO International also disclosed that it decided on a payment guarantee of $781.6 million (about 1.0523 trillion won) for the entity to acquire U.S. shale gas assets.
A POSCO International official said, "We are proceeding with a rights offering as a form of funding support for the acquisition of shale gas assets."