Hyundai Motor Co’s chairman and his heir managed to divest $1.1 billion worth of shares in logistics company Hyundai Glovis Co Ltd, succeeding with the sale on their second attempt.
The chairman and his son managed to find success only after pledging they would refrain for a period from any other sale of remaining shares and after they also dropped the price of the shares. Chairman Chung Mong-koo and son Chung Eui-sun decided to divest the 13 percent stake in the Hyundai affiliate out of necessity – they had to comply with new antitrust regulation. Last month investors decided to veto a first sale attempt, out of fear that the family was considering pulling out entirely from the Hyundai Glovis affiliate and out of uncertainty if the sale was part of the larger plan to give up control towards the younger Chung Eui-sun. The two executives pledged prior to the second attempt they would refrain from any more stake sale of the remaining combined stake of almost 30 percent for a period of just under two years.
In other related news, South Korean carmaker Hyundai Motor – the world’s fifth-largest automaker together with affiliate Kia Motors – announced today it decided to secure in a buy back move a total of 460 billion won ($422.4 million) worth of its own shares. The latest move is part of ongoing effort to lift shareholder value and also appease investors angry over a deal last year that saw the conglomerate buy a prized property for a new headquarters in Seoul with $10 billion. Based on the buyback strategy released last November, the company purchased both common and preferred shares between November 12 and February 3, according to a regulatory filling.