Mirae Asset Global Investments, the asset management arm of Korean financial group Mirae Asset, said Monday that it scrapped a US$5.8 billion deal to acquire 15 luxury hotel properties in the United States from Chinese investor Dajia Insurance, weeks after it called off the takeover, reported The Korea Herald.
Mirae Asset, which acts on behalf of funds it manages, also said it invoked its right for the return of the 10% deposit from a third-party escrow agent as the transaction had failed.
Amid ongoing litigation, the Korean buyer blamed Dajia Insurance, who assumed the control of assets owned by Anbang Insurance, for failing to meet obligations and forcing the deal to end prematurely.
According to Mirae Asset, the Chinese seller failed to disclose information about a lawsuit in regard to one of the target hotel’s ownership and refused to provide a title insurance protection for the asset.
“Although Anbang was in breach of certain material obligations, Anbang had sought to close the transaction on April 17,” Mirae Asset wrote in a termination notice.
“Anbang had failed to timely disclose and discharge various material encumbrances and liabilities impairing the Hotels in accordance with contractual requirements. Anbang did not remedy these breaches, which thereby resulted in the termination of the contract in accordance with its terms by Mirae Asset.”
Full Content: Korea Herald
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