Hyundai Group, the South Korea-based conglomerate controlled by the Chung family, had its bid to block the sale of Hyundai Engineering & Construction to rival Hyundai Motor rejected by a court in Seoul on 4 January.
The ruling leaves Hyundai Motor, which is controlled by a rival branch of the Chung family, free to acquire the 35% share of Hyundai E&C both sides of the family had been bidding for.
Hyundai Group offered $4.8 billion for the share in Hyundai E&C in November but faced scrutiny over how it planned to finance the bid. (Continue reading here) Creditors for Hyundai E&C eventually decided to scrap the deal in December, but Hyundai Group challenged this decision.
The court ruling brings to a close the family battle behind the tussle for control of Hyundai E&C.
Hyundai Motor Group is headed by 71-year-old chairman Chung Mong-koo, son of Hyundai founder Chung Ju-yung. Hyundai Group is controlled by Chung Mong-koo's sister-in-law Hyun Jeong-enu (pictured).
Hyundai E&C was part of the Hyundai Group until 2001 when creditors took a 35% controlling share in the business.
The Hyundai conglomerate was split into two separate companies in 1997-98 following the Asian financial crisis. Hyundai Motor Group, which includes Hyundai Motor, Hyundai Steel and Kia Motors, was headed by Chung Mong-koo and Hyundai Group, which includes Hyundai Elevator, Hyundai Securities and Hyundai Asan, was led by his brother Chung Mong-hun.
Chung Mong-hun committed suicide in 2003 following accusations of false accounting when he faced a prison term, leaving his wife to succeed him as chairperson.
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