PECT stockholders alerted of KCTA selling shares

The Korea Container Terminal Authority (KCTA) announced that it decided to sell stocks in the Pusan East Container Terminal (PECT) Shinsundae wharf operating company, to 8 PECT shareholders . The KCTA has held a 25% share of PECT in order to position itself as a ruling shareholder and improve management efficiency.

It was planned following research results in ?Total Management Check?up of Authority?. The research urged the authority to sell shares in PECT to raise PECT management efficiency as well as to secure investment funding. As the government?s Management Reform Committee chose to sell PECT shares as one of the KCTA?s duties on March 2002, it has been working to come up with a selling process and price estimate.

The KCTA stock, 25% of PECT or 117,500 stocks, is worth 1.175 billion won (10,000 won each). After evaluating the current stock price, the KCTA priced it at 25.9 billion won (220,862 won each), a 20-fold increase for the KCTA?s 12 year long investment.

The KCTA is scheduled to have an explanatory meeting with investors on Jan. 27 and will close bidding registration before noon on February 21, coming to bids that afternoon. It is planning to contract for the sales no later than March 3. The stock will be delivered to buyer if the price paid within 60 days, so by early May, PECT should be under private management if all goes well.

As of January, PECT share holders except KCTA are as follows; KCTC (16.22%), Kuk Jea Moving Trance (10.48%), Korea Express, Global Enterprise, Dongbang Transport Logistics, Dongbu Group and Hanjin Transportation, each with 9.01% and the Woosung Corporation with 3.25%.