Hyundai shares rally over 9pc
SEOUL: Hyundai Motor Co shares yesterday rallied over nine per cent to their highest level in 22 months on hopes that its parent group controlled by chairman Chung Mong-koo may reorganise its structure.
Hyundai shares rose 8.6 per cent yesterday after touching their highest level in 22 months on hopes that the broader Hyundai Motor Group will reorganise its ownership structure as well as on rumours that United States activist hedge fund Elliott Management Corp had acquired a stake.
Elliott last year pressured Samsung Electronics Co Ltd to restructure and pay a special dividend.
But a source said yesterday the Elliot rumours were untrue.
Hyundai Motor Group may also hurry to overhaul its group structure as politicians call for reforms of family-owned conglomerates.
“The company is part of a particularly complex and suboptimal capital and corporate structure, and we see significant value that can be unlocked from restructuring,” said Goldman Sachs in a report on Monday.
“In contrast to the consensus view that Hyundai Mobis would become the ultimate holding company, we see Hyundai Motor as the nexus for restructuring,” said the report. Its affiliates, Kia Motors Corp and Hyundai Mobis Co Ltd, climbed more than four per cent. Reuters