BlackRock ups stake in DSME to 5.57%
[THE INVESTOR] BlackRock, the world’s largest asset manager, has raised its stake in Korean shipbuilder Daewoo Shipbuilding & Marine Engineering to 5.57 percent, according to its regulatory filing on Dec. 6.
BlackRock Institutional Trust Company, a private investment management under BlackRock, revealed it had purchased 4.74 million shares, or 4.42 percent stake, as of Nov. 29. On the following day, it added additional 1.23 million shares, or 1.15, percent stake.
BlackRock’s total asset value is estimated to reach 196.3 billion won (US$175.51 million) based on the stock’s closing price of 32,900 on Dec. 6.
With the latest stock purchase, BlackRock has become the third-largest shareholder in DSME, after state-run Korea Development Bank with 55.72 percent and Hana Bank with 8.41 percent.
BlackRock said the purchase was solely for investment purposes, adding it will not conduct activities that influence DSME’s management.
In Korea, a stake purchase of more than 5 percent in a listed firm is required to be disclosed to the public within five days of the ownership.
BlackRock, with US$6.29 trillion in assets under management, owns stakes in major Korean companies, including Samsung Electronics, LG Electronics and SK hynix.
On news of the stake purchase, in addition to DSME’s announcement of clinching a 443.5 billion won submarine rescue ship deal, the shares closed at 33,550 won, up 1.98 percent from the previous day.
By Ahn Sung-mi (email@example.com)