Guatemala: Korean Company agrees to Purchase Ferrovías

Representatives from YooChang Construction announced an agreement to purchase 82% of the shares of the Railroad Development Corporation (RDC), owner of Ferrovías.

Wednesday, January 11, 2012

The announcement was made by the president of YooChang Construction on a visit to Guatemala, who next week will be holding a meeting with directors of the RDC for the purpose of defining the first payment agreement.

Without disclosing the total amount of the transaction, Dae-Soo Chung stated that the due date negotiated for completing the payment is 23 May.

For his part, "the lawyer for Ferrovias, Juan Pablo Carrasco, confirmed the negotiations, but warned that RDC shareholders expect to get a $65 million compensation from the State of Guatemala, or a similar figure for the sale. Although he refrained going into details, he admitted that the sale transaction would be completed in May", reported Siglo21.com.gt.



More on this topic

Guatemala Seeks Lawyers for Ferrovías Lawsuit

July 2011

The Ministry of Economy is searching for legal professionals to continue the arbitration process requested by Ferrovías.

On July 7 the country must present its statement to the International Centre for Settlement of Investment Disputes (ICSID), but in the absence of professionals to take on the case, it has requested an extension.

Guatemala: Rail Investment Denial

May 2011

There is an old saying that if something looks too good to be true, it probably is ...

The U.S. company Railroad Development Corp. (RDC), which owns the railway concession in Guatemala, has denied having reached an agreement to sell.

As for the Hyundai Corporation, the Asian giant together with another South Korean company had been mentioned as interested in investing $2,400 million in the creation of a dry canal linking the Atlantic and Pacific coasts of Guatemala by railway. Hyundais denies involvement in the project in any capacity.

Guatemala Sells Railway to Koreans

May 2011

Representatives from the Korean companies Hyundai and Yoochang have announced an agreement with the current owner of the Railroad Development Corporation, and a total investment of $2,400 million.

The Korean companies Hyundai and Yoochang Corporation plan to invest in restoring the functioning of the railway linking the Pacific and Atlantic coasts , to create a land alternative to the Panama Canal.

State of Guatemala unsuccessful in stopping Ferrovias lawsuit

November 2008

Ciadi, based in Washington, rejected the request by the State of Guatemala to suspend the suit for $65 million that was presented by Ferrovias in 2007.

By rejecting the objection, the International Center for the Resolution of Investment Disputes (Ciadi) asserts that it has the jurisdiction to handle the case in which the RailRoad Development Corporation (RDC), the majority shareholder in Ferrovias, is suing the Government of Guatemala.

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