Engineering Guarantee Insurance (EGI) will buy Sky Valley Country Club from Hoban Group for 257.6 billion won ($235.5 million), even though Hoban will get less than the sale price.
The South Korean construction conglomerate approved the sale of the 36-hole golf club to EGI for 257.6 billion won at a board meeting last week. The deal will be completed by January 6, 2021.
The sale price is lower than the 300 billion won target by Hoban, though the price of 7.2 billion won per hole for Sky Valley CC still exceeds the record of 6.8 billion won per hole set by Club Mow CC, which was sold by Doosan Group to Moa Construction in August.
Hoban will actually end up with less than the sale price because Sky Valley CC will maintain its mixed operations of membership and public access after the acquisition. This means that the new owner, EGI, will take over the obligation to refund membership deposits.
It is estimated that Hoban will receive about 190 billion won after consideration of membership deposits, which amounted to around 64 billion won at the end of last year.
“Membership deposits were considered in price negotiations,” an official at Hoban Group said. “The sale price less membership deposits will be paid.”
EGI, which is a special corporation under the Ministry of Industry and Commerce, is expanding its golf business after purchasing 18-hole golf course Hill De Loci CC in 2019.
The corporation provides benefits to more than 2600 member companies in the engineering and energy industries. (Reporting by Myeong-kwan Lee)