7 Trillion Won Hotel Acquisition Falls Through, Mirae Asset "Contract Termination" VS Anbang Insurance "Contract Breach"

[Asia Economy Reporter Song Hwajeong] Mirae Asset Global Investments' planned acquisition of U.S. hotels worth 7 trillion won has effectively fallen through. Mirae Asset Global Investments sent a termination notice to China's Anbang Insurance, while Anbang Insurance claims that this contract termination constitutes a breach of the sales agreement, indicating that a fierce dispute between the two parties is expected.

On the 4th, Mirae Asset Global Investments announced that it had sent a termination notice regarding the sales contract for 15 U.S. hotels signed with China's Anbang Insurance to the seller.

Mirae Asset Global Investments stated, "Anbang Insurance wished to close the transaction on the 17th of last month, but the buyer, real estate fund manager Mirae Asset Global Investments, discovered that Anbang Insurance failed to meet the preconditions for closing the transaction. Accordingly, breaches of the sales contract by the seller occurred," adding, "The seller did not timely disclose various burdens and debts that impaired the hotel's value, failed to indemnify, and did not maintain normal hotel operations as required by the contract."

Mirae Asset Global Investments had notified the seller on the 17th of last month that if the breaches regarding the unmet preconditions for closing the transaction were not resolved within 15 days, it would have the right to terminate the sales contract.

In response, Anbang Insurance holds the position that Mirae Asset's termination of the sales contract itself constitutes a breach of the sales contract. Anbang Insurance rebutted, "We have not violated any obligations under the sales contract," and pointed out, "Mirae Asset has not provided any explanation as to whether Anbang Insurance's breach constitutes a 'material adverse effect' under the sales contract."

Anbang Insurance further stated, "We have thoroughly fulfilled our information-sharing obligations under the sales contract for all ongoing matters, and these circumstances are detailed in the complaint submitted to the Delaware Court of Chancery in the U.S.," adding, "In particular, the contents of the DRAA Blanket Agreement, which Mirae Asset claims it did not receive a response to, are also detailed in the complaint Mirae Asset received, and this complaint has already been fully disclosed in the U.S."

With the two parties sharply at odds, it remains unclear whether the deposit will be recovered. Mirae Asset Global Investments, after sending the termination notice to Anbang Insurance, has also delivered a request for the return of the deposit to the escrow agent holding the deposit. On the other hand, Anbang Insurance has notified the escrow agent that the sales contract has not been terminated and that the deposit should not be transferred to the buyer.

Mirae Asset Global Investments signed a contract in September last year to acquire 15 U.S. hotels owned by Anbang Insurance. The total acquisition price was reported to be $5.8 billion (approximately 7.1 trillion won), attracting market attention. Subsequently, Mirae Asset Global Investments confirmed that Anbang Insurance was involved in litigation with a third party related to this hotel sales contract and requested clarification.

This content was produced with the assistance of AI translation services.