Aiming to more than triple its corporate value by 2030, Posco Group plans to have its steel business focus on eco-friendliness and global growth, while fostering new growth engines such as materials for rechargeable batteries and hydrogen.
The holding company will be llisted, while the steelmaking unit Posco, as well as other corporations to be set up under the holding company will remain unlisted to allow quick decision-making.
This is to prevent undermining existing shareholder value and avoid a clash of interests between the holding company and subsidiaries’ shareholders.
By keeping them unlisted, each subsidiary’s growth value will entirely lead to the shareholder value of Posco Holdings.
If a subsidiary needs more funds for its business, Posco Holdings will go ahead with a paid-in capital increase instead of having the subsidiary raise funds by getting listed, the company said.
The holding company will also add more experts in each business field on its board and increase the share of outside directors.
Posco Holdings will largely be in charge of developing future business portfolios; reorganizing group businesses to create synergy; set up research and development strategies for the group; and lead environmental, social and corporate governance management.
With a vision to become “the global business leader for sustainable future of humanity,” Posco Group plans to seek growth in seven core businesses: steel; rechargeable battery materials; lithium and nickel; hydrogen; energy; building and infrastructure; and food.
Posco’s plan to launch a holding company, Posco Holdings, was approved by the board earlier this month. The holding company will hold a 100 percent stake in the steelmaking unit and will secure additional investment for new businesses.
By Kim So-hyun (firstname.lastname@example.org