KT&G's headquarters in southern Seoul (KT&G)
KT&G's headquarters in southern Seoul (KT&G)

BlackRock, the world’s largest asset manager, has acquired a 5 percent stake in KT&G, regulatory filings showed Friday.

According to the disclosure, BlackRock purchased 68,646 shares of the tobacco and consumer goods company on Tuesday. Including its existing holdings, the US-based asset manager now owns 5.91 million KT&G shares, equivalent to a 5.01 percent stake.

Under Korean regulations, investors who acquire 5 percent or more of a listed company’s shares are required to report their holdings and any changes to financial authorities — the Financial Services Commission and Financial Supervisory Service — as well as the Korea Exchange within five days.

Based on data from financial information provider FnGuide, BlackRock is estimated to have become one of KT&G’s top five shareholders, following IBK Industrial Bank of Korea, which holds an 8.06 percent stake, and the National Pension Service with 7.74 percent.

KT&G shares surged following the disclosure, hitting an intraday high of 153,900 won ($107), a record level. The stock closed at 152,900 won, also marking an all-time high on a closing basis.

The company is scheduled to release its earnings results on Feb. 5. Market consensus forecasts KT&G’s sales for last year at 6.53 trillion won, up 10.6 percent from a year earlier, while operating profit is expected to rise 13.3 percent to 1.37 trillion won.


silverstar@heraldcorp.com