Hyundai Motors Setting up Contest with Brother’s Widow
Parent of South Korea's two biggest carmakers, Hyundai Motor Group is ready to bid a $2.5 billion worth stake in Hyundai Engineering & Construction Co., which is setting up scene of contest between the country's second richest man and widow of his brother.
The group comprises Hyundai Motor Co. and Kia Motors Corp. and are lined up to submit a letter of intent today, as informed in a regulatory filing in Seoul.
A victorious bid would help reunite Hyundai Motor with ex-associate, Hyundai Engineering, which is the country's biggest builder.
Korea Exchange Bank along with other creditors of Hyundai Engineering will accept the final bids for the joint 35% share in the building firm by 12th November, as informed by Bank of America Corp.'s Merrill Lynch & Co., Woori Investment & Securities Co. and Korea Development Bank.
"Buying into Hyundai Engineering is a part of Hyundai Motor's efforts to develop a new engine of growth", said Yim Eun Young, a Seoul-based Analyst at Dongbu Securities Co.
The competition is between Hyundai Motor Group and Hyundai Group, and the former said that it might submit an early bid for the stake, which is prior to 1st October.