Lee & Ko provided comprehensive legal advisory for Hyundai Oilbank Co., Ltd. – Koramco REITs & Trust Consortium in its acquisition of gas stations operated by SK Networks. This transaction included several process for the execution of the deal to take place including (i) the establishment of Koramco REITs & Trust and its acquisition of real estate used for SK Networks gas station business purposes (ii) Hyundai Oilbank’s acquisition of SK Networks gas station business (iii) execution of lease agreement between Hyundai Oilbank and Koramco Reits in regards to REITs’ acquisition of real estate, (iv) Hyundai Oilbank’s investment of common stock in REITs. By acquiring SK Networks' gas station through the transaction on November 15, 2019, Hyundai Oilbank is expected to rank second in the industry by overtaking GS Caltex in terms of the number of gas stations, which is expected to resolve the problem regarding shortage of gas stations in metropolitan areas.
This transaction involved complexity and innovativeness in various aspects which required different legal strategy such as (i) due to multiple buyer and seller involved in the acquisition (the seller SK Networks, real estate seller Koramco REITs & Trust, and buyer Hyundai Oilbank), proper coordination between the three parties (ii) comprehensively understanding and identifying wide array of legal issues regarding real estate transfer, business transfer, and establishment and investment in REITs, and provide legal advisory on these range of issues (iii) this carve-out deal’s careful drafting of due diligence regarding the seller’s sale of its entire business (iv) the fact that this deal involves gas station operation business, various review and analysis of license/environment/compliance issues (v) after the closing of deal, legal advisory from business perspective regarding stand-alone aspects. Through these complex issues throughout the transaction,
Lee & Ko led the deal by providing effective advice, including working closely with clients throughout the entire process, and providing timely legal advisory in an efficient manner.
[THE INVESTOR] Hyundai Oilbank expected to emerge as the second-largest player