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S Korea Hyundai sells affiliated oil refiner stake to Saudi Aramco

2019/02/01 12:00

 

South Korea’s Hyundai Heavy Industries announced on Monday that it sold a 19.9% stake of its affiliated oil refiner Hyundai Oilbank to Saudi Arabia’s state-run Saudi Aramco. Hyundai will receive $1.5 mil from Saudi Aramco on a pre-IPO basis. The share in Hyundai Oilbank owned by Hyundai Heavy Industries will decline to 75% from 91.13%, while Saudi Aramco will rank as the second largest stakeholder. Saudi Aramco is the biggest shareholder in another South Korean refiner S-Oil with a 63% share. Some industry sources did not rule out the possibility that Hyundai Oilbank could be integrated as S-Oil’s affiliated company if Saudi Aramco’s shares in Hyundai Oilbank reach 20% or more in the future.

 

Hyundai Oilbank eyes beefing up a wide variety of new businesses including petrochemicals, upstream oilfield developments and lubricants, capitalizing on Saudi Aramco’s global network. The South Korean refiner had been seeking an opportunity to list 30% of its share on an IPO basis since last year, but its efforts were still in vain as of the end of February. Hyundai apparently satisfied its cashing needs through the deal with Saudi Aramco on a pre-IPO basis, despite the failure in its original attempt to list the shares on an IPO basis.

 

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