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SEOUL, March 28 (Yonhap) — Hyundai Motor Group, South Korea’s biggest automotive conglomerate, said Wednesday it will streamline its overall governance structure through business spinoffs and mergers between related businesses.
The business group said it is planning to spin off the module manufacturing and after-sales parts business of auto parts maker Hyundai Mobis Co. and then merge it with logistics firm Hyundai Glovis Co., the company said in a statement.
Hyundai Mobis’s module and after-sales business and Hyundai Glovis will be merged with a ratio of 0.61:1. Hyundai Mobis shareholders will receive 61 new Glovis shares for every 100 Mobis shares after the merger is approved.
All the plans are subject to approval at Hyundai Mobis and Hyundai Glovis general shareholder meetings scheduled for May 29, the statement said.
After the spin-off of Hyundai Mobis’ module and after-sales businesses, the company will focus on further beefing up its core auto parts operations and R&D business and will develop future growth drivers like autonomous vehicles and connected cars, it said.
Moreover, large shareholders, such as Hyundai Motor Group Chairman Chung Mong-koo and Hyundai Motor Group’s heir apparent Vice Chairman Chung Eui-sun, will acquire all Hyundai Mobis shares held by Kia Motors Corp., Hyundai Glovis and Hyundai Steel Co. “to simplify the group’s governance structure,” a company spokesman said.
Kia, Hyundai Glovis and Hyundai Steel currently own 16.9 percent, 0.7 percent and 5.7 percent stakes, respectively, in Hyundai Mobis, the company said.
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.
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