STX to sell 43.1% stake in energy unit to Orix

STX Group said on Tuesday it has signed a contact with Orix Corp., a Japanese financial company, to sell a 43.1 percent stake in STX Energy, the group’s energy business arm.

Under the deal, the group aims to raise 360.1 billion won ($330 million).

Despite a hefty sell-off, STX Group will continue to keep its management rights in the affiliate with a more than 50 percent stake, the company said.

The main businesses of STX Energy are power plant construction and energy development. Orix has invested in areas such as finance, real estate, power generation and environment.

STX Group sold the stake in its energy arm to improve its financial soundness, which the company promised to its creditors in May. Additionally, the group announced last month it will merge STX Metal and STX Heavy Industries, whose business portfolios already overlap.

(jyseo@heraldcorp.com)