Kogas to seek $1.7bn in new share issue

South Korea's state-owned Kogas plans to issue new shares worth 2 trillion won ($1.7 billion, Dh6.4bn) and double its capital to 8 trn won by 2012, a senior company official said.

The world's biggest corporate buyer of liquefied natural gas (LNG) is also considering investing in a gas field in Siberia, estimated to hold about 90 per cent of Russia's natural gas reserves, said the official.

"We cannot delay the issuance too long as our new [resource development] businesses are scheduled to start at the end of this year and early next year," said the official, who declined to be identified. Earlier, local media eDaily quoted Kogas CEO Choo Kang-soo as saying it was considering issuing shares in domestic and overseas markets to raise capital.

The report added that the government was unlikely to subscribe to the new issue but would remain the major shareholder even after it. The government holds a 26.8 per cent direct stake in Kogas and another 24.5 per cent through state-run Korea Electric Power Corp.

Shares in Kogas closed up 5.11 per cent yesterday after the Maeil Business newspaper said the company was considering investing in a gas field in Siberia.

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