Mirae Asset Group has won a lawsuit against China’s Anbang Insurance Group over a canceled bid worth W6.4 trillion to buy 15 hotels in the U.S.
That will allow Mirae Asset to recoup a W640 billion deposit for the deal plus legal expenses (US$1=W1,108).
A court of chancery in the U.S. state of Delaware ordered Anbang to pay Mirae Asset the deposit plus legal costs and threw out a request by Anbang for Mirae Asset to pay the entire cost of the acquisition.
Mirae Asset paid Anbang $580 million in September as a deposit for the acquisition of the 15 hotels. The total deal was worth $5.8 billion. But due diligence after the deposit was paid showed Anbang had concealed the fact that it was locked in an ownership dispute over the hotels.
Mirae Asset demanded that Anbang resolve the issue, but the Chinese insurer did not respond, prompting Mirae to cancel the deal on May 3. Anbang sued the Korean company for failing to live up to contract terms.
The court said Anbang did not live up to the conditions in the acquisition contract and failed to attain “title insurance.”
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