Saudi Aramco promises “commitment to S-OIL growth” by buying S-OIL stocks owned by Hanjin Group
● President Al-Falih stresses his confidence in S-OIL and the Korean economy through his announcement.
● S-OIL CEO Al-Mahasher pursues active investments based on its sound financial structure.
S-OIL’s largest shareholder Aramco Overseas Company B.V. (AOC) officially announced on July 2 that AOC will buy 31,980,000 stocks in S-OIL, which are owned by Hanjin Group.
Khalid A. Al-Falih, Saudi Aramco President and Chief Executive Officer, said in his announcement, “This transaction underscores Saudi Aramco’s confidence in the Korean economy and its strategy to enhance its presence in the growing Asian markets and AOC’s commitment to S-OIL growth.”
Meanwhile, S-OIL CEO Nasser Al-Mahasher said, “Saudi Aramco, which has driven S-OIL’s growth for the past 20 years as its largest shareholder, acquired all S-OIL stocks by Hanjin Group, and we will take this opportunity to maximize our competitiveness and increase our corporate value through active investments for sustainable growth based on healthier financial standing, cementing our foundation for long-term growth.”
The following is the full text of AOC’s announcement:
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AOC agrees to acquire Hanjin Group's stake in S-Oil
Aramco Overseas Company B.V. (“AOC”) has agreed in principle to acquire the Hanjin Group’s (the “Group”) entire stake in S-OIL Corporation (“S-OIL”) comprising approximately 32 million shares representing 28.4% of the issued and outstanding common shares of S-OIL, for a total amount of ₩ 1,982,982,332,000 (or approximately US $1.95 billion at current exchange rate). This share purchase will increase AOC’s ownership interest in S-OIL from 34.99% to 63.4%. The transaction is contingent on the execution of formal transaction agreements and regulatory approvals.
In commenting on the transaction, AOC’s Managing Director Fahad AbdulKareem emphasized AOC’s unwavering commitment to maintaining the sound financial performance of S-OIL and to enhancing the value of the business and its competitive market position.
“This transaction underscores Saudi Aramco’s confidence in the Korean economy and its strategy to enhance its presence in the growing Asian markets and AOC’s commitment to S-OIL growth.” said Khalid A. Al-Falih, Saudi Aramco President and Chief Executive Officer, while expressing his gratitude to Hanjin Group “for a mutually rewarding partnership with Aramco Overseas Company in S-Oil over the past 7 years,” and communicating Saudi Aramco’s wishes for the Group’s future success.
Aramco Overseas Company B.V. (AOC) is a subsidiary of the Saudi Arabian Oil Company (Saudi Aramco). It provides support services to Saudi Aramco and through its investments and joint ventures forms an integral part of the global Saudi Aramco oil, gas and chemicals enterprise. It has been a major shareholder of S-OIL since 1991.
Saudi Aramco is a fully integrated, global energy and chemicals enterprise and a world leader in exploration and production, refining and distribution, and the world’s top exporter of crude oil and natural gas liquids.
