Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 19 -- A South Korean court has chosen a consortium led by SK Corp. as the preferred bidder for the sale of Incheon Oil Refinery Co. (OGJ Online, July 13, 2005).
The district court in Incheon, west of Seoul, said that it chose the SK consortium because of its proposed takeover price and management ability.
Analysts reportedly said SK suggested an acquisition price of $981 million to the court.
The court also said that consortia led by STX and Citigroup Financial Product will be allowed to negotiate for the refinery if the SK deal falls through.
SK will sign a memorandum of understanding for the deal next week before it concludes the main contract in mid-October following a month of due diligence, court officials said.
Six companies and a fund bid for Incheon Oil, including China's state oil trader Sinochem, S-Oil, and Morgan Stanley Emerging Market Fund.
Creditors have been seeking to sell South Korea's smallest refiner, which went into court receivership after becoming insolvent in March 2003.
Contact Eric Watkins at [email protected].
