Hyundai Group, the Korea-based conglomerate controlled by the Chung family, may face further scrutiny over its $4.8 billion bid for a controlling share in Hyundai Engineering & Construction.
According to Korea Exchange Bank, one of the shareholders selling its stake in Hyundai E&C, the Hyundai Group will be asked for further details of the bid for the third time amid concerns over the funding of the deal.
Hyundai Group is believed to be borrowing up to $1 billion to finance the deal, according to press reports in Korea, and will now be given five additional days to provide more detailed financial information.
Hyundai Group became the preferred bidder for the 35% share in Hyundai E&C, the country's top construction group, in November after beating a rival offer from Hyundai Motor Group, a separate conglomerate controlled by a rival branch of the Chung family.
Hyundai Motor Group announced its intention to make an offer in late September for the controlling share of Hyundai E&C after weeks of press speculation over whether it would participate in the bidding.
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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