Kepco Engineering Falls After Korea Electric Sells Shares

Author: Spencer Ogden
Date posted29/Nov/2011
Author: Spencer Ogden

Kepco Engineering & Construction Inc. fell the most in three weeks in Seoul trading after its biggest shareholder sold part of its stake in the nuclear plant design company at a discount.

Kepco Engineering declined 3.7 percent to close at 86,300 won on the Korea Exchange, the biggest drop since Nov. 9. The benchmark Kospi index gained 2.3 percent.

Korea Electric Power Corp. (KEP), known as Kepco, raised 101.2 billion won ($88 million) by selling 1.18 million shares of Kepco Engineering for 86,100 won apiece yesterday, a 3.9 percent discount to the closing price, according to data compiled byBloomberg. (052690) The buyers weren’t immediately known.

Kepco’s holding was reduced to 74.9 percent from 77.9 percent after the sale.

Morgan Stanley (MS), Samsung Securities Co., Tong Yang Securities Inc. and Woori Investment & Securities Co. arranged the block share transaction, according to Bloomberg data.