The automaker said it would use its own capital to take over the builder, adding it would send a letter of intent to creditors of Hyundai Construction later on Monday.
The nine creditors led by the
It would also be able to take part in
“This type of synergy… will enable Hyundai Construction to become a fully integrated world-class engineering company.”
The announcement set the stage for a struggle for control of the builder between Chung Mong-Koo, chairman of the cash-rich carmaker, and his widowed sister-in-law Hyun Jeong-Eun, who leads the much smaller Hyundai Group.
Hyun’s group expressed regret at
The huge Hyundai conglomerate spun off
Hyundai Engineering and Construction came under creditors’ control in 2001 in a bailout package that included a 2.9 trillion won (now 2.5 billion dollar) debt-for-equity swap.
The rump of Hyundai Group now includes a shipping firm, a brokerage, a tour company that operates projects in
Last month three of the affiliates — Hyundai Merchant Marine, Hyundai Securities and Hyundai Elevator — each disclosed in public filings that they intend to bid for the construction firm.