* KDIC sells KEPCO shares at discount of 3.9 pct to Tuesday close
* Deal upsized to $550 mln to meet additional investor demand
By Elzio Barreto
HONG KONG, Oct 10 (Reuters) - 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 said.
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 million).
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 more.
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.