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Mirae Asset to countersue China’s Anbang in hotel deal dispute

Mirae Asset Global Investments’ headquarters in Seoul (Mirae Asset Financial Group)
Mirae Asset Global Investments’ headquarters in Seoul (Mirae Asset Financial Group)

South Korea’s investment firm Mirae Asset Global Investments said Monday that it would countersue China’s Anbang Insurance Group in a widening dispute over an acquisition deal of luxury hotels in the US.

The legal action came after the Chinese insurer last month filed a suit with the Delaware Court of Chancery against the Seoul-based investment management firm for failing to complete payment of $5.8 billion for the takeover of 15 luxury hotels in the US.

The first trial is set to be held by the end of August as the US court approved Anbang’s request to swiftly proceed the litigation process.

Having refused to pay the money, Mirae Asset claimed the Chinese counterpart had failed to meet some necessary conditions to complete the deal by April 17 promised in their contracts. The company said that Anbang failed to secure title insurance, a measure that guarantees the ownership of a property, for some of the hotels. In addition, Anbang was found to have been involved in litigations over the ownership of the properties in the US, it added.

The Korean investment management firm said it has hired law firms Peter & Kim and Quinn Emanuel to proceed with the countersuit.

By Kim Young-won (wone0102@heraldcorp.com)
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