[Intl-tobacco] Korea Tobacco To Fully Privatize By End '02

[Robert Weissman]

March 14, 2002
Korea Tobacco Stk/Govt -2: To Fully Privatize By End '02


DOW JONES NEWSWIRES

SEOUL -- The South Korean government will sell its entire 33% stake in
Korea
Tobacco & Ginseng Corp. (Q.KTO) after the end of April, the Ministry of
Finance and Economy said in a statement Friday.

It didn't specify the time period. The government aims to sell a 19%
stake,
or 37 million shares worth 650 billion won ($1=KRW1,321.7), to domestic
investors. It also plans to sell a 14% stake, or 26 million shares worth

$340 million, to foreign investors.

The sale of the shares in Korea Tobacco, which has a monopoly in tobacco
and
ginseng products manufacturing, is part of the government's bid to fully

privatize the company by the end of 2002.

UBS Warburg (U.UBS), Goldman Sachs Group Inc. (GS), Hyundai Securities
Co.
(Q.HDS) and Dongwon Securities Co. (Q.DGW) will lead manage the overseas

stake sale.

Hyundai Securities, Dongwon Securities, LG Investment & Securities Co.
(Q.LSC) and Samsung Securities Co. (Q.SSS) will lead manage the domestic

stake sale.

As part of the government's privatization plan, KT&G offered
international
investors its global depositary receipts and exchangeable bonds worth
$550
million, or equivalent to a 20% government stake, late in 2001.

KT&G reported a 2001 net profit of KRW333.8 billion, a 24% on-year rise.

At 0210 GMT (9:10 p.m. EST Thursday), shares of the company were off
0.9%,
or KRW150, at KRW16,350.

-By Laura Elizabeth Pohl and So-eui Rhee, Dow Jones Newswires;
822-732-2165,
laura.pohl@dowjones.com