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Hyundai affiliates hold overseas IR sessions on merger plan

2018/04/09 16:10

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SEOUL, April 9 (Yonhap) -- Hyundai Mobis Co. and Hyundai Glovis Co., two affiliates of Hyundai Motor Group, will hold overseas investor relations meetings this week to explain their planned merger to stakeholders, the conglomerate said Monday.

The two companies already completed their joint question-and-answer sessions on the merger plan in the United States last week, with the same IR sessions scheduled to take place in Europe and Asia this week, a company spokesman said.

The IR sessions come after Hyundai Motor Group announced in late March that it will streamline its circular cross-shareholding structure through business spinoffs and mergers among affiliates.

Under the reorganization plan, auto parts supplier Hyundai Mobis will spin off its domestic module and after-sales parts businesses and merge them with logistics affiliate Hyundai Glovis.

After the spinoff and merger, Hyundai Mobis plans to focus on further beefing up its core auto parts operations and R&D business and developing future growth drivers like autonomous vehicles and connected cars.

Moreover, large shareholders, such as Hyundai Motor Group Chairman Chung Mong-koo and his heir apparent Vice Chairman Chung Eui-sun, plan to acquire all Hyundai Mobis shares held by Kia Motors Corp., Hyundai Glovis and Hyundai Steel Co. to simplify the group's governance structure.

Kia, Hyundai Glovis and Hyundai Steel currently own 16.9 percent, 0.7 percent and 5.7 percent stakes, respectively, in Hyundai Mobis.

The move comes after the country's antitrust regulator asked the group to come up with a concrete plan to overhaul its complicated shareholding structure among affiliates by the end of March.

All the plans are subject to approval at Hyundai Mobis and Hyundai Glovis general shareholder meetings scheduled for May 29.

As for Hyundai's streamlining efforts, Elliott Advisors Ltd., a unit of U.S. activist hedge fund Elliott Management Corp., said last week it welcomed the step as "encouraging" as a holder of more than US$1 billion worth of stock in three major Hyundai affiliates. But it asked for more efforts to improve corporate governance by the group.

The three affiliates that Elliott has acquired stakes in are Hyundai Mobis, Hyundai Motor Co. and Kia.

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