* KDIC offers KEPCO shares at discount of zero to 3.9 pct to
* Deal could grow to almost $800 mln if KDIC sells entire
By Elzio Barreto
HONG KONG, Oct 9 State-run Korea Deposit
Insurance Corp (KDIC) launched on Tuesday an up to $235 million
shares selldown in Korea Electric Power Corp (KEPCO)
, a source with direct knowledge of the plan said.
KDIC, through its Korea Resolution & Collection
Corp. unit, is offering 9.67 million KEPCO shares in a range of
25,900-26,950 Korean won each, added the source, who was not
authorized to speak publicly on the matter and thus did not want
to be identified.
The deal could grow to almost $800 million, Thomson Reuters
publication IFR reported, if KDIC sells its entire 5 percent
stake in the utility.
KDIC had been considering selling it for a while to recoup
funds that went into normalizing banks teetering from the Asian
financial crisis, a KDIC official told Reuters on Tuesday. The
state-run company got the stake when Newbridge Capital acquired
in 1999 what is now Standard Chartered Korea.
In late September, a government committee overseeing the
recouping of public funds approved advising banks' request to
sell the KDIC stake piecemeal - by chunks of 1.5 percent or
Advisers previously only had the mandate to sell the entire
stake or nothing, and the market was seen less likely to digest
the entire stake at once, a source with direct knowledge of the
committee proceedings previously told Reuters.
Citigroup, Deutsche Bank, Shinhan
Investment Corp and Woori Investment & Securities were hired as
joint bookrunners on the deal.