Hyundai E&C sale decision seen after court ruling

SEOUL (BestGrowthStock) – Shareholders of Hyundai Engineering & Construction Co Ltd (000720.KS: ) will decide whether to select Hyundai Motor (005380.KS: ) as a preferred bidder after a court decision on a rival bidder’s attempt to block the $4.4 billion sale.

On Monday, shareholders of Hyundai E&C, South Korea’s top builder, scrapped a preliminary deal with Hyundai Group for failing to clarify its financing plans, paving the way for rival Hyundai Motor Group to initiate sales talks.

“We plan to meet and decide on the matter after a court decision comes out,” an official at one of the major shareholders of Hyundai E&C, told Reuters.

Creditors previously said they may vote next week on whether to award the preferred bidder status to Hyundai Motor Group.

But Hyundai Group has asked a Seoul court to prevent shareholders of Hyundai E&C from killing the $4.8 billion deal.

A judge at the Seoul court said on Friday that it aimed to rule on the request by the end of next week, and by January 4 at the latest.

Shipping-focused underdog Hyundai Group surprised the market last month by outbidding Hyundai Motor Group with an around 5.5 trillion won ($4.8 billion) offer for the E&C stake, more than double the market price. Hyundai Motor Group had offered about 5.1 trillion won.

The battle for the flagship unit of the original Hyundai group, which was torn apart by a family feud in 2001, revived a decade-long rivalry between members of the founding family of what was once South Korea’s biggest conglomerate.

Hyundai Group head Hyun Jeong-eun took on Hyundai Motor Chairman Chung Mong-koo, the oldest surviving son of the founder of Hyundai and brother of Hyun’s deceased husband. Shareholders on

(Reporting by Hyunjoo Jin and Ju-min Park; Editing by Chris Lewis)

Hyundai E&C sale decision seen after court ruling