Hyundai Engineering Web toolbar

Hyundai Heavy (HHI) to sells $636 Million Stake in Hyundai Motor

·        Hyundai Heavy offers 3.2 Million shares of Hyundai Motor in block deal

·        Offering worth up to $636 Million would be South Korea's biggest of 2012 (Adds details of the offering, South Korean equity deals)

(Reuters) - Hyundai Heavy Industries hopes to raise up to $636 million selling a stake in Hyundai Motor, as the South Korean shipbuilder looks to improve its financial health in the country's biggest equity capital markets deal this year.

Hyundai Heavy is offering 3.2 million Hyundai Motor shares at 219,500-228,500 Korean won, equivalent to a discount of up to 3.9 percent on Monday's closing price, according to a source with direct knowledge of the plans.

At the top end of the range, Hyundai Heavy would raise about 731 billion Korean won ($636 billion), in South Korea's biggest stock offering since chemical producer KCC Corp sold a $602 million stake in Hyundai Heavy on Jan. 12.

Hyundai Heavy said in a regulatory filing the stake had a book value of 746.4 billion won at the end of the first quarter and the sale would improve its financial structure.

The block sale announcement came after Hyundai Heavy's share price fell 8 percent this month to hit its lowest closing price in more than two years on Monday on expectations second-quarter earnings will be hit by the fallout from Europe's debt crisis.

The move came after South Korean refiner Hyundai Oilbank, 91.1 percent owned by Hyundai Heavy, postponed a $2 billion initial public offering in June because of volatile markets and ahead of a suspension of Iran crude imports on western sanctions.

Hyundai Heavy will still hold a 2 percent stake in the automaker after the sale.

Citigroup was hired as sole bookrunner for the deal. ($1 = 1,150.30 Korean won) (Reporting by Elzio Barreto in Hong Kong, and Ju-min Park and Hyunjoo Jin in Seoul.

Hyundai Engineering with HDEC signed $3 Billion USD - Venezuela refinery project

Wison Engineering Ltd together with Hyundai Engineering & Construction Co Ltd has won a $2.993 billion contract to upgrade a state-run oil refinery in Venezuela.

The three companies were granted the contract on June 28, 2012.

The companies will carry out engineering, procurement and construction of the Puerto la Cruz Refinery project, which is located 250 kilometers east of Caracas, the capital of Venezuela.

The project, which is expected to be completed within 42 months from its commencement, will upgrade refinery facilities to process heavy crude oil with a capacity of 210,000 barrels a day. The contract also calls for the expansion of gasoline, diesel and aviation kerosene projects and other facilities.

The $2.993 Billion US Dollar contract is a joint consortium of the following:

  • Hyundai Engineering & Construction Co., Ltd (HDEC)'s share is $1.347 Billion US Dollars
  • Wison Engineering's share is $927.80 Million US Dollars
  • Hyundai Engineering Co., Ltd (HEC)'s share is $718.32 Million

"Venezuela refinery project is one of the multi Million Dollar project of Hyundai Engineering since the company has been awarded more than 1 Billion US Dollar projects in Turkmenistan and India last year (2011) which construction is still currently on progress

Related Posts Plugin for WordPress, Blogger...