IPIC to sell Hyundai Oilbank stake

Hyundai Heavy Industries Co. said that Abu Dhabis International Petroleum Investment Co. (IPIC) has agreed to sell its stake in Hyundai Oilbank Co. to Hyundai Heavy because of a ruling by the Seoul Central District Court in South Korea. In a regulatory filing to the Financial Supervisory Service, Hyundai Heavy said the two companies signed an agreement on the stake sale on August 10. Hyundai Heavy will pay 2.573 trillion won (US$2.19 billion) in cash for 171.56 million shares in Hyundai Oilbank. According to Hyundai Heavy, through the sale “we will be able to secure a bridgehead in the energy business and seek synergies with our petrochemical plant business”. Once the acquisition is completed, Hyundai Heavy will own a 91.13% stake in Hyundai Oilbank. The remaining 8.87% will be held by Hyundai shareholders. (August 13, 2010)