Breaking News

Macquarie-Led Group to Buy Louisiana Utility Cleco for $3.4 Billion
Tweet TWEET

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.

To contact the reporters on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net; Seonjin Cha in Seoul at scha2@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.