Saudi Aramco plans to buy $1.6 billion stake in South Korea's Hyundai Oilbank

  • Saudi Aramco plans to buy up to 19.9 percent of South Korea's Hyundai Oilbank for 1.8 trillion won ($1.61 billion) from Hyundai Heavy Industries Holdings, according to a regulatory filing on Monday.
  • Saudi Arabia's state-owned oil giant is the biggest shareholder of South Korean refiner S-Oil Corp.
An attendant fills up gas at the Hyundai Oil Bank gas station in Sungman, South Korea, on Tuesday, Oct. 16, 2007.
Seokyong Lee | Bloomberg | Getty Images
An attendant fills up gas at the Hyundai Oil Bank gas station in Sungman, South Korea, on Tuesday, Oct. 16, 2007.

Saudi Aramco, Saudi Arabia's state-owned oil giant, plans to buy up to 19.9 percent of South Korea's Hyundai Oilbank for 1.8 trillion won ($1.61 billion) from Hyundai Heavy Industries Holdings.

Hyundai Heavy Industries Holdings, which currently owns a 91.13 percent stake in Hyundai Oilbank, also said it plans to "reconsider" the stock market listing of the refinery arm, after completing the stake sales to Saudi Aramco.

Saudi Aramco plans to value Hyundai Oilbank at 10 trillion won, or 36,000 won per share, Hyundai Heavy Industries Holdings said in a statement.

The holding company of shipbuilder Hyundai Heavy Industries will use the funds to be raised from the deal to "invest in new businesses and improve its financial health."

Saudi Aramco also works with shipbuilder Hyundai Heavy Industries and others under a joint venture to build a shipyard on Saudi Arabia's eastern coast.

Saudi Aramco is the biggest shareholder of South Korean refiner S-Oil Corp.