GS Holdings to spin off energy businesses

South Korean holding company GS Holdings Corp. announced on October 19 that it will spin off its energy businesses by transferring its 50% stake in unlisted unit GS Caltex Corp. to a new company, in an effort to increase the profitability of its portfolio. GS Holdings will set up the new company, to initially be named GS Energy Corp., on January 1 to oversee its renewables and alternative energy businesses, as well as oil and mineral resource development. It will also inject into GS Energy its 50% stake in GS Caltex, which will narrow its focus to refining, petrochemicals and lubricants. U.S.-based Chevron Corp. will continue to hold the other 50% of GS Caltex, alongside GS Energy, which will have an initial capital of KRW250 billion (US$221 million). (October 19, 2011)