Head office of Anbang Insurance Group

Mirae Asset claims the seller did not keep contract conditions

South Korea’s Mirae Asset Global Investments said that it could not keep the April 17 deadline of finishing the deal of acquiring 15 U.S. hotels because its seller failed to keep certain conditions.

Early this week, China’s Dajia Insurance Group brought Mirae Asset to a Delaware court to enforce the contract. But Mirae Asset said that the plaintiff is responsible for the delayed closing.

Through due diligence, we learned that the seller is involved in a lawsuit with a third-party player. We asked the seller to provide details, but it did not answer,” a Mirae Asset spokesman said.

Hence, we informed on April 17 that we have the right to terminate the contract in case the seller does not abide by its conditions within the following15 days. We will be waiting for its answer by May 2.”

If the seller’s side do not respond to Mirae Asset by May 2, the Seoul-based outfit is expected to file a countersuit against Anbang and Dajia.

Last September, a consortium headed by Mirae Asset agreed to buy a portfolio of 15 U.S. luxury hotels owned by China’s Anbang Insurance Group.

Anbang has gone on a selling binge of its overseas assets after Beijing took control of the embattled financial group in 2018. Dajia is a new entity founded to take over many assets from Anbang.

Last year, the $5.8 billion deal between Mirae Asset and Anbang was dubbed as the biggest cross-border real estate investment by a Korean company.

Mirae Asset Global Investments is South Korea’s representative asset management company. Included in its sister firms are Mirae Asset Daewoo, the country’s top brokerage house, and Mirae Asset Life Insurance.