January. 29. 2022
POSCO expects company value to increase after transition to holding company
|POSCO Group Chairman Choi Jeong-woo delivers a speech during the 22nd general meeting of shareholders at the POSCO Center in Seoul on Friday. Courtesy of POSCO Group|
The shareholders approve the project of the steelmaker to create a holding company
By Kim Hyun-bin
POSCO Group expects improved enterprise value and balanced growth after transitioning to a holding company system, Chairman Choi Jeong-woo said Friday.
“The transition to a holding company system is essential for a balanced growth of the group and the improvement of the value of the company in a rapidly changing business environment, such as a great transition to a low carbon and environmentally friendly era. environment, accelerating technological innovation and strengthening ESG management,” POSCO Group Chairman Choi said at a general meeting of shareholders, where the group confirmed the transformation into holding company. The holding company POSCO Holdings will be launched on March 2 and POSCO, the operating company, will be in charge of the existing steel business as a subsidiary
Among the total shareholders, 75.6 percent took part in the vote and passed the conversion measure with an approval rating of 89.2 percent at the meeting held at the POSCO Center in Seoul.
Choi pointed out that the future business environment will undergo a “revolutionary change” never seen in the past.
“POSCO’s Board of Directors discussed in depth medium and long-term business strategies to actively respond to the revolutionary environmental changes and ways to support the company’s growth,” added the Chairman.
“We agreed that innovation in the management system is urgently needed to become a global business leader.”
After the approval of the transition of the holding company, Choi added, “I am grateful for the support and confidence of domestic and foreign shareholders for the future vision of POSCO Group. We will do our best to achieve sustainable growth and improve shareholder value.
Through the transformation into a holding company, POSCO intends to reinvent itself as a “manufacturer specializing in environmentally friendly materials” through new growth activities such as secondary batteries and hydrogen, alongside its traditional steel business. The company is also expected to re-evaluate the group’s new growth drivers following the transition to a holding company structure.
The goal is notably to more than triple its current value by 2030 by accelerating growth based on the holding company system.
Meanwhile, POSCO Holdings will be launched as a listed company and will play a role in the development of the group’s future portfolio, the reorganization of the group’s activities and the creation of synergies as well as the direction of the overall ESG management of the group.
The steel business will be delisted and become a 100% subsidiary of the holding company, and will be in charge of operating all activities related to the production and sale of steel.
On the news, POSCO shares rose 2.91%, closing at 265,000 won ($219) on Friday.