Saudi Aramco to buy $2 billion stake in S-Oil

1/10/2014

Saudi Aramco to buy $2 billion stake in S-Oil

BY HEESU LEE

DHAHRAN (Bloomberg) -- Saudi Arabian Oil Company, will buy a $2 billion stake in S-Oil Corporation.

The state-owned producer, known as Saudi Aramco, will buy almost all of Hanjin Energy’s stake in S-Oil, according to an S-Oil official who asked not to be identified because of internal policy. The purchase was earlier reported by the Maeil Business Newspaper, which cited S-Oil CEO Nasser Al-Mahasher saying Aramco will buy Hanjin’s entire stake.

Aramco, the South Korean refiner’s largest shareholder, currently owns 35% of S-Oil, followed by Hanjin’s 28.4%, according to data compiled by Bloomberg.

An e-mail to Aramco outside of normal business hours wasn’t immediately responded to.

Korean Air Lines, said on December 19 that it planned to sell 30 million shares of S-Oil as part of a plan to raise $3.2 billion through asset sales to cut debt.

Hanjin Energy bought its stake in S-Oil for $2.25 billion in 2007. Korean Air owns 96.6% of Hanjin Energy.

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