Hyundai Group Given Until Dec. 7 to Give Details on Loan to Buy Builder
Hyundai Engineering & Construction Co.’s shareholders gave Hyundai Group until Dec. 7 to submit information about a 1.2 trillion won ($1 billion) loan it received from Natixis SA to finance a stake in the builder.
The stakeholders may offer five more working days to the group after receiving the information, should further details be required, Korea Exchange Bank, one of the leading shareholders, said today. The group’s Nov. 16 selection as preferred bidder for the 35 percent stake prompted Hyundai Motor Group, which wasn’t selected, to demand fuller disclosure of the winner’s financing plans.
Shareholders, including Korea Exchange Bank, have said Hyundai Group may lose its preferred bidder status should it fail to provide sufficient information on the 1.2 trillion won ($1 billion) loan from Natixis, the investment-banking unit of France’s second-biggest lender by branches. The group offered about 5.5 trillion won for the stake, two people familiar with the matter said on Nov. 16. The amount is more than double the market price.
Stake owners, including Korea Finance Corp., may start talks with Hyundai Motor Group after seeking legal advice, should Hyundai Group be stripped of its bidding status, Kim Hyo Sang, a director at Korea Exchange Bank, said today at a briefing in Seoul.
Korea Finance, the biggest shareholder, will ask financial regulators to verify terms for an 800 billion won loan Hyundai Group made with Tong Yang Securities Inc. for the acquisition, the state-run agency said today in a separate e-mailed statement.
Hyundai Merchant Marine Co., the biggest unit of Hyundai Group, gained 2.7 percent to close at 42,300 won in Seoul. Hyundai Engineering rose 1.7 percent to 64,300 won, compared with a 1.3 percent advance for the benchmark Kospi index.
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