Hyundai, IPIC intensify dispute over SKorean oil refiner
Hyundai Heavy Industries said its board voted to purchase the entire 70 percent stake that IPIC now holds in Hyundai Oilbank, the fourth largest refiner in South Korea.
By PTI |
SEOUL: South Korea's Hyundai Heavy Industries took a new step Tuesday in its dispute with the Abu Dhabi-based International Petroleum Investment Co (IPIC) over control of a local refiner.
Hyundai Heavy Industries said its board voted to purchase the entire 70 percent stake that IPIC now holds in Hyundai Oilbank, the fourth largest refiner in South Korea.
The decision came after Hyundai Heavy Industries, the world's largest shipbuilder, filed a legal complaint against IPIC. The Abu Dhabi firm is trying to dispose of part of its stake to a third party in violation of an agreement, according to the Korean firm's officials.
"Hyundai Heavy Industries, the second largest investor with a 19.87 percent stake in the refiner, has priority to take over IPIC-owned stakes under the previous agreement," a Hyundai spokesman told AFP.
"But IPIC was trying to sell part of its stake to a third party without consultations with us. It is an apparent breach of the agreement."
The spokesman said IPIC had been in talks with GS Group, a South Korean conglomerate built around GS Caltex, the country's second largest refiner.
Hyundai Heavy Industries last week asked a local court to stop any deal between IPIC and GS Group, he said, adding his company also plans to apply for international arbitration in Singapore.
IPIC was not immediately available for comment. Officials at GS Caltex refused to comment.
IPIC took a 50 percent stake in Hyundai Oilbank in 1999 and later expanded it to 70 percent, according to Hyundai Heavy Industries.
Hyundai Heavy Industries said its board voted to purchase the entire 70 percent stake that IPIC now holds in Hyundai Oilbank, the fourth largest refiner in South Korea.
The decision came after Hyundai Heavy Industries, the world's largest shipbuilder, filed a legal complaint against IPIC. The Abu Dhabi firm is trying to dispose of part of its stake to a third party in violation of an agreement, according to the Korean firm's officials.
"Hyundai Heavy Industries, the second largest investor with a 19.87 percent stake in the refiner, has priority to take over IPIC-owned stakes under the previous agreement," a Hyundai spokesman told AFP.
"But IPIC was trying to sell part of its stake to a third party without consultations with us. It is an apparent breach of the agreement."
The spokesman said IPIC had been in talks with GS Group, a South Korean conglomerate built around GS Caltex, the country's second largest refiner.
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Hyundai Heavy Industries last week asked a local court to stop any deal between IPIC and GS Group, he said, adding his company also plans to apply for international arbitration in Singapore.
IPIC was not immediately available for comment. Officials at GS Caltex refused to comment.
IPIC took a 50 percent stake in Hyundai Oilbank in 1999 and later expanded it to 70 percent, according to Hyundai Heavy Industries.
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