STX Group Shares Tumble

(Reuters) STX Group, formerly Ssangyong Heavy Industries, shares tumbled on Monday morning after an official at Woori Bank said the company is considering a stake sale in STX Corp, the group’s holding company.

Woori Bank, a unit of Woori Finance Holdings Co Ltd , holds about 6.5 million shares in STX Corp, which is owned by STX Group chairman Kang Duk-soo, as a collateral to money it lent to ForceTEC.

ForceTEC controls 23.1 percent of STX Corp, and is majority owned by STX Group chairman Kang.

“We are considering selling STX Corp shares. No other decision has been made,” said the Woori Bank official who declined to be named as he was not authorised to speak to the media.

Concerns that the share sale could destabilise the current shareholder structure that governs STX Group sent affiliate shares tumbling.

STX Offshore & Shipbuilding Co Ltd fell 14.5 percent and STX Engine Co Ltd shed 14 percent. STX Pan Ocean Co Ltd shares fell 8 percent.

by Jungyoun Park. (c) 2013 Reuters