Hanjin to buy shares in S-Oil
Seoul-based Hanjin Group, whose affiliates include ocean carrier Hanjin Shipping and airline Korean Air, have agreed to purchase 31.98 million treasury shares of S-Oil, representing 28.41 percent of the total issued common stock of South Korea’s third-largest refiner.
Hanjin Energy Co. Ltd., a special purpose company established today, would conduct the purchase, which is subject to governmental approval.
Hanjin Shipping will invest about Won150 billion ($157 million) in S-Oil through the participation in rights offering.
“Hanjin Shipping is expected to benefit from the transaction by securing a stable supply of fuel from S-Oil, while seeking to cooperate with the oil company in order to provide transportation services to S-Oil in return,” Hanjin said in a statement.