Hyundai Motor, Kia Motors to cut stakes in steel affiliate to meet corporate ownership norms in S. Korea

Hyundai Motor and Kia Motors have been ordered to sell a combined 6.6 percent stake worth 461 billion won ($394 million) in steelmaking affiliate Hyundai Steel by Thursday to meet conglomerate ownership rules.

Shares in Hyundai Steel tumbled as much as 6 percent in morning trade on news of the sale.

South Korea seeks to address complex cross-shareholdings involving affiliates of big industrial groups, which have long been criticized for their poor corporate governance.

Samsung Group, the country’s top conglomerate, said on Sunday that its battery-making arm Samsung SDI will sell $622 million worth of shares in sister firm Samsung C&T Corp to comply with the regulations.

Hyundai and Kia must reduce their holdings by Dec. 31 in Hyundai Steel, which increased after the steel producer’s merger with another steelmaking affiliate Hyundai Hysco on July 1, the Fair Trade Commission said in a statement on Wednesday.

Hyundai Motor must offload a 4.3 percent stake in Hyundai Steel, which was worth 300.5 billion won at Tuesday’s closing price. Kia must sell a 2.3 percent stake worth 160.2 billion won.

A Hyundai Motor spokeswoman said the company had no immediate comment.

($1 = 1,170.3000 won)

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Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.