[Intl-tobacco] Korea: Govt to sell remaining tobacco co. stake

[Robert Weissman]

Gov't to sell remaining stake in KTGC
November 21, 2001
Korea Herald

The government is to sell the remaining equities held by state-run banks
in Korea Tobacco & Ginseng Corp. (KTGC) in April next year at the
earliest, an official of the Ministry of Finance and Economy said
yesterday.

The government has agreed to lock up the 33 percent stake in KTGC held
by three state-run banks for at least 180 days in a contract for the
issuance of deposit receipts (DRs) and exchangeable bonds (EBs) for 20
percent of state-held KTGC equities abroad in October.

Industrial Bank of Korea (IBK), Korea Development Bank (KDB) and EXIM
Bank also do not want to release the KTGC equities to the domestic stock
market, fearing the release may dampen the current rising sentiment, the
official said.

IBK owns 19 percent of KTGC and both KDB and EXIM Bank hold 7 percent
each.

"We still maintain the principle of selling state-held KTGC equities on
the domestic stock market," the official said, noting that each would-be
buyer is to be limited to less than 7 percent of the equities.

KTGC meanwhile will offer dividends to shareholders on an equal basis as
privatization of the corporation is undertaken, the official said,
adding that it has so far offered preferential dividends to small
shareholders.

2001.11.21