Hyundai Heavy selling 20% stake in refining subsidiary to Saudi Aramco

South Korea’s largest shipbuilder Hyundai Heavy Industries (HHI) is selling a 19.9% stake in its refinery subsidiary, Hyundai Oilbank, to Saudi Aramco for KRW1.8trn ($1.6bn in its latest move to bolster its financial position.

Saudi Aramco already owns 63.4% of S-Oil Corp, another Korean refiner.

HHI has been spinning off non-core businesses in recent years as it restructures amid a lengthy shipbuilding downturn.