Motor Group signs a final agreement to purchase a 34.9% controlling stake in Hyundai Engineering & Construction for 4.96 trillion won ($4.43 billion).
A statement by the Korea Exchange Bank, the principal shareholder in the transaction, says the purchase will close in April when the necessary funds are received.
In its own disclosure to the Korea Stock Exchange,Motor Co., which leads the Hyundai Motor Group consortium of affiliated companies, states it is acquiring 23.3 million shares in HE&C.
Hyundai Motor Co. says it will pay 2.9 trillion won ($2.7 billion) for a 20.9% stake. Hyundai’s affiliated companies, Kia and Hyundai Mobis, will purchase the remaining 14% stake for a combined $1.73 billion.
According to the terms of the deal, the transaction must be completed within one month.
The Hyundai Motor Group is not a corporation and does not have its own stock structure. It is a group of companies affiliated with Hyundai Motor Co., most of which have complex interlinking stock ownerships.
Chung Mong-koo, the chairman and CEO of Hyundai Motor Co., effectively is the CEO of all of the affiliated companies within the group.
HE&C is the second-largest construction firm in Korea and does business on a global scale, building refineries, power plants, nuclear plants, manufacturing plants, office towers and public infrastructure in many nations.
The construction firm also holds a 7.8% stake in Hyundai Merchant Marine, one of the world’s largest shipping and logistics companies, which operates a global fleet of 160 modern ocean vessels.