Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Hyundai Motor chief, son gain W1 trillion with stake sale
By Park Jin-hai
Hyundai Motor Group Chairman Chung Mong-koo and his son raised 1.1 trillion won ($1 billion) with the successful sale of their combined 13.99 percent stake in Hyundai Glovis, officials said Friday.
Chairman Chung and Hyundai Motor Vice Chairman Chung Eui-sun sold a total of 5.02 million shares in the logistics unit through a block deal in after-hours trading Thursday, according to officials from the company and financial firms.
Institutional investors bought the shares for 230,500 won apiece, a discount of 2.7 percent from Thursday’s closing price. It was about 50,000 won lower than the asking price at their botched sale last month.
Hyundai Motor has said that the sale is aimed at meeting toughened government regulations on intra-group transactions.
A revised Anti-Trust Law will take effect on Feb. 14, which bans business group owners and their family members from holding more than a 30 percent stake in affiliates that earn more than 20 billion won annually, or 12 percent of annual sales through intra-group dealings.
Their combined stake in the logistics unit fell to 29.99 percent. Before the sale, the senior Chung held an 11.51 percent of Hyundai Glovis, and his son, 31.88 percent.
Even after the sale, they will remain the largest shareholders in the company. The stake sale is expected to save them 10 billion won in tax annually.
Analysts said the deal was successful as the shares were sold at a discount and with better communication with investors.
Citigroup Global Markets Korea Securities and NH Investment Securities were the lead managers of the deal.
Hyundai Motor has said that the stake sale has nothing to do with the succession of the group control to the junior Chung.
However, the general market perception is that he needs money to secure a stake in Hyundai Mobis, the group’s de-facto holding company, in the process of succession. Currently, he has no stake in the key auto parts making unit.
There is a two-year lock-up period for the remaining stake in Hyundai Glovis, meaning they will be banned from disposing of any more of their shares during that time.
Hyundai Glovis shares surged 5.91 percent to close at 251,000 won Friday. Hyundai Mobis, however, plunged 4.34 percent to 242,500 won. Hyundai Motor lost 1.51 percent to 163,500 won. The benchmark KOSPI ended up 2.68 points to close at 1,955.52.