The patriarch of South Korea’s Hyundai Motor group and his heir-apparent have raised $1.1 billion selling their stakes in its logistics arm, officials said Friday.
The group said chairman Chung Mong Koo and his son and vice chairman Chung Eui Sun sold 5.02 million shares through a block deal Thursday after calling off the sale last month. The shares were sold at 230,500 won each.
The sale helped the Chung family reduce its stake in Hyundai Glovis to 29.99 percent from 43.39 percent to comply with new anti trust rules aimed at curbing intra group transactions, it said.
The regulations target what the government regards as unfair transactions between affiliates of family run conglomerates, or “chaebols” — especially in cases where family members hold stakes larger than 30 percent.
Investors who backed away from the initial attempted sell-off last month, appeared to have been drawn in this time by a lower share price and an undertaking by Hyundai that there will be no further divestment in Glovis for the next two years.
Like other family run conglomerates, Hyundai Motor, which along with its affiliate Kia Motors is the world’s fifth largest automaker, is seen as preparing for a generational power shift from the elder Chung to his 44 year old son.
“The stake sale has nothing to do with it (ownership transfer),” a Hyundai spokesman told AFP, dismissing market speculation that the money could be used for paying inheritance taxes.
Glovis once served as the group’s virtual holding company.
FRENCH VERSION
The group said chairman Chung Mong Koo and his son and vice chairman Chung Eui Sun sold 5.02 million shares through a block deal Thursday after calling off the sale last month. The shares were sold at 230,500 won each.
The sale helped the Chung family reduce its stake in Hyundai Glovis to 29.99 percent from 43.39 percent to comply with new anti trust rules aimed at curbing intra group transactions, it said.
The regulations target what the government regards as unfair transactions between affiliates of family run conglomerates, or “chaebols” — especially in cases where family members hold stakes larger than 30 percent.
Investors who backed away from the initial attempted sell-off last month, appeared to have been drawn in this time by a lower share price and an undertaking by Hyundai that there will be no further divestment in Glovis for the next two years.
Like other family run conglomerates, Hyundai Motor, which along with its affiliate Kia Motors is the world’s fifth largest automaker, is seen as preparing for a generational power shift from the elder Chung to his 44 year old son.
“The stake sale has nothing to do with it (ownership transfer),” a Hyundai spokesman told AFP, dismissing market speculation that the money could be used for paying inheritance taxes.
Glovis once served as the group’s virtual holding company.
FRENCH VERSION
Le groupe a déclaré président Chung Mong Koo et son fils et viceprésident Chung Eui soleil vendu 5,02 millions actions grâce à unbloc jeudi après l’appel au large de la vente le mois dernier. Lesactions ont été vendues à chaque de 230 500 won.
La vente a aidé la famille Chung réduire sa participation dansHyundai Glovis à 29,99 % de 43.39 % pour se conformer ànouveau anti règles antitrust pour limiter les opérations d’intragroupe, il a dit.
Les règlements visent à ce que le gouvernement considèrecomme injustes transactions entre sociétés affiliées deconglomérats exécution familiales, ou « chaebols » — surtoutdans les cas où les membres de la famille détiennent stakessupérieure à 30 pour cent.
Les investisseurs qui ont soutenu loin de la première tentativesell-off le mois dernier, semble cette fois ont été aspiré par unprix inférieur de l’action et l’engagement de Hyundai, qu’il yn’aura aucun autre désinvestissement dans Glovis pour les deuxprochaines années.
Comme autre familial de conglomérats, Hyundai Motor, qui, avecsa filiale Kia Motors est le cinquième plus grand constructeur d’automobiles du monde, est considéré comme préparation pourun changement générationnel de puissance de l’aîné Chung àson fils âgé de 44 ans.
« La vente de la participation n’a rien à voir avec ça (transfert depropriété), » un porte-parole de Hyundai à l’AFP, rejetant lesspéculations de marché que l’argent pourrait être utilisé pour lepaiement des droits de succession.
Glovis servait autrefois comme société de portefeuille du groupevirtuel.
