IPIC may sell majority stake in Hyundai Oilbank

Abu Dhabi’s International Petroleum Investment Co. (IPIC) may sell a controlling stake in Hyundai Oilbank Corp., South Korea’s fourth-largest oil refiner, sources said. IPIC, which invests in oil-related projects for the Abu Dhabi government, said it planned to sell up to half of its 70% stake in Hyundai Oilbank, but increasing the stake to 50% and offering management rights may lure more potential buyers, sources said. IPIC has received interest from several bidders for the stake, but has yet to decide how much to sell, a spokeswoman said, adding IPIC would keep a significant minority stake. The initial 35% stake was estimated to be worth 700-800 billion won (US$770-880 million), sources said. Frontrunners for the deal were mostly South Korean, but a 50% stake sale could interest international firms. Hyundai Heavy Industries Co. already owns 19.8% of Hyundai Oilbank. IPIC began investing in unlisted Hyundai Oilbank in 1999, and raised its stake to 70% in February 2006. It hopes to finalize a sale this year. (August 28, 2007)