Hyundai Motor Group chairman Chung Mong-koo and his son Eui-sun have once again put on sale their combined 13 percent stake in the automaker’s logistics affiliate Hyundai Glovis, the company said in a press release on Thursday.
Their first attempt to sell the stake in a block deal last month failed due to unspecified reasons, although industry sources attributed it to the size of the deal at 1.5 trillion won ($1.39 billion) and sales conditions.
“The company has an urgent need to push for the deal again to meet the renewed antitrust ruling on intragroup transactions,’’ the company said.
The new fair trade regulation, which will be effective this month, prohibits the owner of a conglomerate and his or her family members from having a 30 percent or higher stake in other affiliates.
Currently, Hyundai Motor chairman and his son hold a 43.39 percent in Hyundai Glovis. If the deal is successful as planned, their stake will drop below 30 percent.
To complete the deal, the company proposed a discounted price per share, hovering between 227,520 won and 232,260 won.
The sudden block deal was seen as an attempt to raise money for the group’s vice chairman Eui-sun to increase control in the automotive group as he holds more shares in Hyundai Glovis than those of his father.
Currently, the senior Chung holds 11.51 percent in the logistics arm, while his son owns 31.88 percent.
The company, however, repeatedly claimed that the deal has no connection to changes in the group’s governance.
By Seo Jee-yeon (jyseo@heraldcorp.com)
