Samsung C&T confirmed it was ending talks with Bain Capital to sell its remaining 20.05 stake in its former chemical unit, now Hanwha General Chemical, due to a difference over pricing.
In a disclosure statement on Thursday, Samsung C&T said it was ending exclusive sale negotiation with the preferred bidder due to a difference in the “terms."
The trading and holding entity of Samsung Group has tried to shed its remaining interest in chemical business the conglomerate sold to Hanwha Group in 2015.
Samsung C&T reportedly desires to get around 900 billion won ($803 million) for the shares in Hanwha General Chemical that generates most of its income from dividends from its petrochemical subsidiary Hanwha Total.
Petrochemical business had been booming due to softening in oil prices late last year when Samsung C&T and Bain Capital initiated their negotiation. Earnings outlook deteriorated after oil prices jumped from $60 to $80 this year.
"Hanwha Total paid a dividend of more than 400 billion won to Hanwha General Chemical last year, but it is uncertain whether future dividends will match this level,” said an industry watcher.
By Hwang Soon-min and Minu Kim
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