Hanjin Group to buy stake in S-Oil

Hanjin Group, one of the world’s largest logistics and transportation conglomerates, announced an agreement to acquire 31.9 million treasury shares of S-Oil Corporation. Korean Air, Hanjin Shipping and Korea Airport Service, all affiliates of Hanjin Group, have established Hanjin Energy Co., Ltd., a special purpose company funded by debt and equity, formed solely to acquire the treasury shares from S-Oil. Most terms, with the exception of the price which is estimated at between 2 trillion won (US$2.12 billion) and 3 trillion won (US$3.19 billion), are settled. With the purchase of 28.4% of the outstanding stock of the oil refiner, Hanjin will participate in the management of S-Oil along with its current largest shareholder Aramco Overseas Company, an overseas subsidiary of Saudi Aramco, the world’s largest energy company in terms of oil reserves and production. (January 15, 2007)