Chungs looking to sell Hyundai Glovis shares

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Chungs looking to sell Hyundai Glovis shares

Chung Mong-koo, chairman of Hyundai Motor Group, and his son Chung Eui-sun, vice chairman of the nation’s leading automaker Hyundai Motor, have decided to make a second attempt to sell their stakes of Hyundai Glovis.

Hyundai Motor Group said Thursday it will seek to sell 13.39 percent of Hyundai Glovis stakes owned by the father and son.

The company said it aims to lower the combined share owned by the Chungs to 29.99 percent.

“The government has been tightening regulations on internal transactions within a conglomerate and its affiliates to ensure fair trades,” Hyundai Motor Group said in a statement. “We are only following the regulations that were enacted in February.”

In January, the Chungs tried to sell the stakes as the new regulations are aimed at what the government regards as unfair trades among affiliates of chaebol groups, specifically in cases where families hold stakes of more than 30 percent. The sale failed, however, as some terms were not met, according to the company.

The son owns 31.88 percent of Glovis, while his father owns 11.51 percent. A successful deal would have the son own 23.29 percent and his father 6.7 percent.

The company also added that a two-year lockup condition that prohibits the Chungs from selling more shares that would make them own less than 29.99 percent will apply to any deal in order to protect the value of Glovis shares.

On Jan. 14, when the two failed to sell the stakes, Hyundai Glovis shares fell by the 15 percent daily limit in Seoul trading.

The company said the selling price per share is set between 227,520 won ($208) and 232,260 won, which is 2 to 4 percent lower than Thursday’s close of 237,000 won. The deal will be managed by Citigroup Global Markets. If the stakes aren’t completely sold, Citigroup would take over the remainder.
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