South Korea’s Hyundai Motor Co., the largest carmaker in the country, announced it would introduce its first interim dividend aimed at lifting shareholder returns.
The company was heavily panned by some of its investors for seriously overpaying a piece of land it purchased in the center of Seoul last year. Hyundai, the world’s fifth largest carmaker when taken together with affiliate Kia Motors, has announced a payment of 1,000 won per share, or a total of 268.7 billion won ($231 million), as an interim dividend, according to a recent regulatory filling. Following the announcement, the stock surged 4.2 percent to 136,500 won in early trading. The interim dividend comes about a year after the automaker and its main affiliates, Kia and Hyundai Mobis secured a transaction for a prized piece of land in South Korea’s central Gangnam district. Numerous reports later showed the companies paid about triple the initial appraised price, besting by more than double the rivaling bid from Souith Korean technology behemoth Samsung Electronics. It was also revealed the board of directors of the company signed the purchase even without knowing the exact price of the transaction.
Hyundai announced it would use the land it acquired to move its current headquarters, while also planning to build a hotel, convention center and auto theme park. The headquarters would house employees from 30 of its affiliates. So far, the stock has not regained from the losses triggered by the purchase, with Hyundai shares still around 34 percent below the September 18 value, the day the deal was announced.