Abu Dhabi's IPIC to Sell Oilbank Stake After Rulings, Hyundai Heavy Says

Hyundai Heavy Industries Co. said International Petroleum Investment Co. has agreed to sell Hyundai Oilbank Co. to the world’s biggest shipyard for $2.2 billion after two courts ruled in favor of the transaction.

The Abu Dhabi government investment arm and Hyundai Heavy signed an agreement yesterday, the shipyard said in a regulatory filing today. Sally Cho, a spokeswoman at a public relations firm representing IPIC, said she is checking the agreement.

Last month, Seoul Central District Court confirmed the right of Hyundai Heavy to buy the South Korean refiner from IPIC, backing a ruling in Singapore last year. IPIC appealed the decision to the Seoul High Court at the end of July.

The International Chamber of Commerce in Singapore said Nov. 12 that IPIC breached a shareholder agreement with Hyundai Heavy and ruled that IPIC should sell its 70 percent stake in Hyundai Oilbank for 2.57 trillion won ($2.2 billion) to the Ulsan, South Korea-based company. The acquisition, potentially Hyundai Heavy’s biggest, would help the company expand its energy business and cut its dependency on building vessels.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net; Sungwoo Park in Seoul at spark47@bloomberg.net

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