South Korean investment banker Mirae Asset Daewoo Co Ltd said Tuesday it has won a U.S. lawsuit with China’s Anbang Insurance Group after the Mirae Asset affiliate abandoned a deal to buy 15 of Anbang’s U.S. hotels for $5.8 billion. But the neo-crowning epidemic has put many deals at risk this year, with tourism being one of the sectors hit hardest by global travel restrictions. But the lawsuit victory sent Daewoo stock soaring today.
Reuters reported today that South Korea’s Mirae Asset won a lawsuit against China’s Anbang Insurance over a hotel deal. A Mirae Asset-led consortium agreed last year to buy the hotels from Anbang; the group has been selling some of its overseas assets since the Chinese government took over the troubled company in 2018, the news agency said.
Mirae Asset said in a regulatory filing on Tuesday that Anbang had previously filed a lawsuit alleging that Mirae Asset’s affiliates had to honor their payment commitments to acquire the hotel, while Mirae Asset’s affiliates filed a countersuit demanding the return of deposits, payment of transaction costs, and related litigation costs.
A Delaware court on Monday denied Anbang’s request for payment and ruled that Anbang should return the deposit and pay $3.685 million in fees, according to court documents seen by Reuters. Anbang Insurance has been liquidated, and some of its assets have been transferred to a newly formed entity called Big Insurance Group. An administrator of Big Insurance could not immediately be reached for comment. Shares of Mirae Asset rose 6 percent on Tuesday, Reuters said.
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