GS Group, a South Korean retail and refining conglomerate, said Wednesday that a consortium of GS Holdings Corp. and LG Corp. has been selected as the preferred bidder for a controlling stake in STX Energy Co.

The consortium will purchase 72 percent of the 96.35 percent stake held by Orix Corp. of Japan, the group said.

Detailed terms of the stake sales between the consortium and Orix will be determined in additional negotiations to be held as soon as possible, the GS Group said.

GS Holdings has two energy units ― GS EPS and GS Power Co. ― under its wing, which operate LNG power stations. The new acquisition is hoped to boost its competitiveness in the power generation business while diversifying its business portfolio, the group said.

STX Energy was an energy subsidiary of cash-strapped STX Group, a South Korean shipping and shipbuilding conglomerate, but was excluded from the group’s units in July.

STX Energy has drawn interest in the industry for its 1,200-megawatt coal power plant, South Korea’s first private power station, that will go into operation in 2016. (Yonhap News)