Hyundai Oilbank IPO still on course after stake sale

The owner of South Korea’s fourth-largest oil refinery will still pursue the highly anticipated initial public offering of its business after selling a 17% stake to Saudi Arabia’s state oil company.

Saudi Aramco, Saudi Arabia’s state-owned oil company, has struck a deal to buy a minority stake in South Korea’s Hyundai Oilbank for W1.37 trillion $1.2 billion as the world’s third-largest oil producing country looks to gain a stronger foothold of its downstream business in Asia.

According to the terms of the agreement, Hyundai Heavy Industries will sell 41.7 million shares equivalent to a 17% stake in the unlisted company at W33,000 each. The sale price per share is 8.3% lower to that in the preliminary agreement signed in late January.

Saudi Aramco will also have an option to purchase an additional 2.7% stake within five years to...

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