Hyundai Heavy Industries Holdings Co., the holding company of South Korea’s top shipbuilding conglomerate Hyundai Heavy Industries Group, said Monday it will receive 1.4 trillion won (US$1.2 billion) in proceeds next month from the sale of a stake in its refining unit.
In April, Hyundai Heavy signed a deal with Saudi Aramco to sell a 17 percent stake in Hyundai Oilbank Co. to the world’s largest crude exporter to improve its financial structure.
The deal also includes the Saudi oil firm holding an option to acquire an additional 2.9 percent stake in Hyundai Oilbank, the country’s smallest refiner.
Saudi Aramco recently told Hyundai Heavy that it has earned regulatory approval for the deal from antitrust regulators in various countries, including China, Germany and Brazil.
Once the deal is officially completed, Saudi Aramco will become the second-largest shareholder of Hyundai Oilbank with a 17 percent stake. Hyundai Heavy Industries Holdings retains a 74.1 percent stake in Hyundai Oilbank.
Hyundai Oilbank posted sales of 5.3 trillion won in the third quarter, up 2.5 percent from a year earlier, but its operating profit plunged 34.3 percent on-year to 157.8 billion won in the three-month period.
Saudi Aramco is currently the largest shareholder in S-Oil Corp., South Korea’s third-largest refiner, with a 63 percent stake.