POSCO to sell stake in its construction unit to Saudi fund

POSCO Co. has signed a deal to sell a 38 percent stake in its construction unit, POSCO Engineering & Construction Co. to Saudi Arabia's sovereign wealth fund.

The deal between POSCO and Saudi Arabia's Public Investment Fund (PIF) is said to help boost cooperation of the two sides in infrastructure projects in the Middle East country.

The largest Korean steelmaker is to sell its stake in POSCO E&C to PIF for 1.24 trillion won ($1.12 billion).

Even after the deal, POSCO will continue to be the largest shareholder in POSCO E&C with a 52.8 percent stake with PIF ranking second.