Hyundai Heavy says Aramco buys 17% stake in S.Korean refiner unit for $1.2bn

State-owned Saudi Aramco has agreed to buy a 13 percent stake in South Korean oil refiner Hyundai Oilbank for $1.24bn. (File photo/AFP)
Updated 15 April 2019
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Hyundai Heavy says Aramco buys 17% stake in S.Korean refiner unit for $1.2bn

  • Saudi Aramco reached an agreement to acquire a $1.24 billion stake in South Korean refiner Hyundai Oilbank
  • It would provide Saudi Arabia's state-run oil company with a dedicated outlet for its crude to South Korea

SEOUL: The biggest shareholder in South Korean oil refiner Hyundai Oilbank said on Monday that state-owned Saudi Aramco had agreed to buy a 17 percent stake in its oil processing operations for 1.4 trillion won ($1.24 billion).
Hyundai Heavy Industries Holdings said in a regulatory filing that it had signed a sales agreement with Saudi Aramco that included an option for Aramco to buy an additional 2.9 percent stake in Hyundai Oilbank.
The agreement, reached with an Aramco subsidiary, Aramco Overseas Co. B.V (AOC), will support the mother company’s crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea, Aramco said in a statement.
In late January, Hyundai Heavy said Aramco planned to invest up to $1.6 billion for as much as 19.9 percent of the South Korean refiner to expand its foothold in the country.
Aramco bought the stake in the unlisted refiner for 33,000 won per share, which is slightly lower than its initially planned price, reflecting market conditions, said an official at Hyundai Heavy who provided no further details.
The investment is meant to support Aramco’s broader downstream growth strategy and provide long-term crude oil options and offtakes as part of the company’s trading business, Abdulaziz Al-Judaimi, Aramco’s senior vice president of downstream, said in the statement.
Hyundai Heavy has said it plans to “reconsider” listing its refinery arm after completing the stake sale.
The Hyundai Heavy official said the company would take its time in deciding whether to go ahead with its refining arm’s public listing, without setting a timeframe.
Hyundai Oilbank, South Korea’s smallest refiner by capacity, has a total of 650,000 barrels per day of refining capacity in the southwestern city of Daesan and aims to expand its petrochemical business.


Alibaba head’s remarks spark debate over China working hours

Updated 24 min 36 sec ago
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Alibaba head’s remarks spark debate over China working hours

  • Jack Ma is one of China's richest men and his comments last week brought both condemnation and support as China's more mature economy enters a period of slower growth

BEIJING: Remarks by the head of Chinese online business giant Alibaba that young people should work 12-hour days, six days a week if they want financial success have prompted a public debate over work-life balance in the country.
Jack Ma is one of China’s richest men and his comments last week brought both condemnation and support as China’s more mature economy enters a period of slower growth.
Newspaper People’s Daily, the ruling Communist Party’s mouthpiece, issued an editorial, saying mandatory overtime reflects managerial arrogance and was also impractical and unfair to workers. Online complaints included blaming long work hours for a lower birth rate in the country.
Ma has responded to the criticism by saying work should be a joy and also include time for study, reflection and self-improvement.