Investors snap up Chungs’ Hyundai Glovis sharesHyundai Motor Group Chairman Chung Mong-koo and his son Chung Eui-sun, vice chairman of Hyundai Motor Group, have reduced their holdings in Hyundai Glovis, the logistics arm of the nation’s leading automaker.
According to Hyundai Motor Group on Friday, a total of 13.39 percent of shares owned by the father and the son were sold to institutional investors via a block deal just a day after the group announced the shares were available. The sale price per share was 235,000 won ($215), about 2.74 percent lower than Thursday’s closing price of 235,000 won. The total sale amount was 1.1576 trillion won.
The identity of the buyers was not announced, as is the custom.
After the deal, the stake owned by the father in the logistics company was 6.71 percent, while the son held 23.28 percent for a combined share of 29.99 percent.
The Chungs attempted to sell shares in January, but failed as some terms weren’t met, according to the company. But buyers wasted no time on Friday.
“We believe the two-year lock-up condition attracted investors this time,” said Hwang Kwan-sik, a spokesman for Hyundai Motor Group. The two Chungs extended the lock-up condition from six months to two years, under which they promise not to sell more Glovis shares.
After the deal was completed, Hyundai Glovis shares rose 5.91 percent to close at 251,000 won on Friday. Meanwhile, shares of Hyundai Motor Group’s auto parts affiliate, Hyundai Mobis, closed down 4.34 percent at 242,500 won.
Shares of the two companies went in opposite directions because of speculation the sale might signal a power shift from the father to his 44-year-old son, and there were rumors the Chungs might sell the rest of their stakes to raise money. As a result, investors moved to the group’s parts affiliate.
Hyundai Motor Group on Thursday denied the rumors, saying it is just following recently changed regulations on internal transactions with affiliates to ensure fair trades.
The new regulations target what the government considers unfair trades among affiliates of chaebol groups, specifically in cases where families hold stakes of more than 30 percent.
There were rumors the father and the son might purchase shares of Hyundai Mobis, but industry insiders said that is unlikely.
“They could purchase no more than 4 percent of Mobis shares with the money they earned from the sale,” said Um Kyung-ah, a researcher at Shinyoung Securities. “It looks like they just wanted to follow the regulations.”
BY KWON SANG-SOO [firstname.lastname@example.org]
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