Korea Gas Corporation Merger Plan Includes Separate Debt Vehicle - report

South Korea is considering a separate subsidiary for the oil company's debt under its Korea Gas Corporation (036460) merger plan. Newsis reported Monday that Deputy Finance Minister Heo Jang described the proposal during an appearance on a presidential office program.

The proposed subsidiary would also hold troubled overseas assets belonging to Korea National Oil Corporation. It would sell those assets in stages depending on market conditions, according to the minister.

Heo said the government would prepare safeguards to protect existing shareholders as it develops the merger arrangements. The company's market capitalisation was ₩3.2 trillion at Monday's close.

Sources

  1. Newsis
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