State plans 30pc stake sale in Korea Tobacco (fwd)

[Robert Weissman <rob@essential.org>]

State plans 30pc stake sale in Korea Tobacco
by BRIDGE NEWS in Seoul
Date: Wednesday, 7/7/99

The Ministry of Finance and Economy plans to sell a 15 per cent stake in
state-run Korea Tobacco and Ginseng Corp via foreign depositary receipts
in the fourth quarter.

The United States' Credit Suisse First Boston, Warburg Dillon Read
Securities of Switzerland, Hyundai Securities and Tongwon Securities of
South Korea will serve as lead managers for the issue, an official in the
ministry's budget planning division said.

The government is also planning to sell domestically another 15 per cent
of its stake by late August or early September, before listing the shares
in the stock market.

The ministry has mandated Samsung and LG Securities as the lead managers
for the domestic sell-off, the official said.

"The government has chosen the lead managers but the details are still in
the process of being refined," he said.

The government has yet to decide whether the issue will be in the form of
global depositary receipts or American Depositary Receipts and the exact
timing of the launch.

The official said the government's domestic public offering for its 15 per
cent stake would open by the end of this month, while a roadshow for the
overseas issuance is likely to start two to three weeks before the
issuance, he added.

The 30 per cent sale is in line with the government's effort to fully
privatise the tobacco and ginseng manufacturer by next year.

After the sales, the government will be left with just 4.4 per cent versus
34.4 per cent, according to the official.

The Industrial Bank of Korea has the largest stake in the company with
35.4 per cent.