South Korean engineering firm Hyundai Heavy Industries (HHI) has won its latest legal battle to take control of the country's 395,000 b/d refiner Hyundai Oil.
The Seoul central district court has upheld an International Court of Arbitration ruling last year, which ordered Abu Dhabi's state-owned overseas investment arm Ipic to sell a majority stake to Hyundai companies. Ipic had rejected the arbitration court order to sell back its 70pc stake for 2.57 trillion won ($2.1bn), saying the ruling was not enforceable in South Korea.
Ipic has been trying to offload its stake in Hyundai Oil since 2007, with Chevron touted as a possibly buyer. But HHI sought a court injunction to stop Ipic from selling to a third party because it wanted to exercise an option that Hyundai companies had a pre-emptive right to any sale. HHI currently has a 21.1pc stake in Hyundai Oil, with fellow Hyundai companies Hyundai Motor and Hyundai Steel having 4.3pc and 2.2pc stakes respectively.
HHI's pursuit of Hyundai Oil is a U-turn for the Hyundai brand, which started disposing of oil-related assets in 1999 when it initially sold a 50pc share of the refinery to Ipic for $510mn. Hyundai Oil was forced to take over the 275,000 b/d Inchon refinery from now defunct Hanwha Energy under a government directive in 1998, when South Korea was suffering an economic crisis. The bankrupt Inchon was eventually bought by South Korean refiner SK in 2005.
The Seoul central district court has upheld an International Court of Arbitration ruling last year, which ordered Abu Dhabi's state-owned overseas investment arm Ipic to sell a majority stake to Hyundai companies. Ipic had rejected the arbitration court order to sell back its 70pc stake for 2.57 trillion won ($2.1bn), saying the ruling was not enforceable in South Korea.
Ipic has been trying to offload its stake in Hyundai Oil since 2007, with Chevron touted as a possibly buyer. But HHI sought a court injunction to stop Ipic from selling to a third party because it wanted to exercise an option that Hyundai companies had a pre-emptive right to any sale. HHI currently has a 21.1pc stake in Hyundai Oil, with fellow Hyundai companies Hyundai Motor and Hyundai Steel having 4.3pc and 2.2pc stakes respectively.
HHI's pursuit of Hyundai Oil is a U-turn for the Hyundai brand, which started disposing of oil-related assets in 1999 when it initially sold a 50pc share of the refinery to Ipic for $510mn. Hyundai Oil was forced to take over the 275,000 b/d Inchon refinery from now defunct Hanwha Energy under a government directive in 1998, when South Korea was suffering an economic crisis. The bankrupt Inchon was eventually bought by South Korean refiner SK in 2005.
