* KDIC sells KEPCO shares at discount of 3.9 pct to Tuesday
* Deal upsized to $550 mln to meet additional investor
By Elzio Barreto
HONG KONG, Oct 10 State-run Korea Deposit
Insurance Corp (KDIC) sold about $550 million worth of shares in
Korea Electric Power Corp (KEPCO) late on Tuesday,
more than doubling its planned offering to meet increased
investor demand, a source with direct knowledge of the plan
KDIC, through its Korea Resolution & Collection
Corp. unit, sold 23.5 million shares of KEPCO, well above its
base size of 9.67 million, added the source, who was not
authorized to speak publicly on the matter.
The offering was priced at 25,900 Korean won, at the bottom
end of an indicative range and equivalent to a 3.9 percent
discount to Tuesday's close, and raised 608.65 billion won ($548
The sale represented a stake of about 3.6 percent in KEPCO,
out of KDIC's total 5 percent stake.
KDIC had been considering selling the stake 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 what is now Standard Chartered Korea in 1999.
In late September, a government committee overseeing the
recouping of public funds approved a request by advising banks
to sell the KDIC stake piecemeal - by chunks of 1.5 percent or
Advisers previously only had a 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.