Hyundai to bid for stake in E&C company

By Chris Sleight27 September 2010

Hyundai Group has announced its intention to bid for a 35% stake in Hyundai Engineering & Construction (E&C), the country's largest contractor. The announcement may spark a bidding war for Hyundai E&C, with a different faction of the Hyundai business empire, Hyundai-Kia Automotive Group reportedly also planning a bid.

One of Hyundai E&C's long-term creditors, Korea Exchange Bank, has set a deadline of 1 October to receive letters of intent to acquire its 35% stake in the contractor. Hyundai Group has long stated its wish to re-acquire Hyundai E&C, which was spun-off from the group in 2001 following the death of its founder, Chung Ju-young. Hyundai E&C was the first group company Mr Chung set up in 1947.

Both Hyundai Group and Hyundai Kia Automotive have said they will lodge letters of intent to acquire Hyundai E&C by the October 1st deadline. The preferred bidder for the business is expected to be announced by the end of the year, and KEB's 35% stake could be valued at as much as US$ 3.5 billion.

Hyundai E&C had revenues of US$ 8.1 billion last year, making it Koreas' largest contractor and ranking it 39th in the iC league table of the world's largest construction companies.

Latest News
Tesla to add battery, electric truck factories in Nevada
New facilities will add 4 million sq. ft. to current Gigafactory
Heavy Lift Projects secures ring crane funding
Multi-million investment to allow completion of engineering phase for improved ring crane design
Automated Liebherrs for German terminal
Two dual trolley STS cranes ordered for German terminal operator