Hyundai shares rally over 9pc

New Straits Times - - Business -

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

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