The Nation reported that South Korean steel giant POSCO is launching a tender offer for shares of Thainox Stainless, after purchasing a stake from the Thai steel company's major shareholders.

In a statement to the Stock Exchange of Thailand, Thainox said that POSCO signed an agreement for the purchase of shares from major shareholder Mr Prayudh Mahagitsiri and his children Usanee, Chalermchai and Usana. Their shares would be sold at THB 2.20 apiece.

POSCO will also make a tender offer for the remaining shares at THB 2.20 apiece.

The tender offer is conditional on POSCO securing more than 51% of shares in Thainox.

At present, POSCO owns 1.2 million shares, amounting to a 15.39% stake in Thainox.

Thainox's board of directors or shareholders will also have to allow the divestiture of non production land and assets, given that Thainox would become a foreign company after POSCO's takeover. Such an approval must be given within 15 days from Wednesday when POSCO signed the share purchase agreement with Mr Mahagitsiri.

In late 2006, POSCO had agreed in principle to acquire 15% stake in Thainox Stainless from Mr Prayudh or his relatives for THB 2 billion.

(Sourced from The Nation)