Hyundai Robotics Co., as part of a group-wide restructuring plan to act as a holding entity for non-shipbuilding units of Hyundai Heavy Industries, has exchanged new issues in its stock worth 1.77 trillion won ($1.57 billion) in return for shares in Hyundai Heavy Industries, Hyundai Electric, and Hyundai Construction Equipment.
The exchange - 4,382,817 in new shares at 403,687 won apiece which is 2.01 percent discounted from Monday’s closing of 412,000 won - had upset the existing shareholders. Shares of Hyundai Robotics ended Tuesday at 390,500 won ($345.9), 21,500 won or 5.2 percent down from the previous session.
In April, Hyundai Heavy Industries Co. was spun off into Hyundai Robotics, Hyundai Heavy Industries (HHI), Hyundai Construction Machinery, and Hyundai Electric & Energy System. Hyundai Robotics would be acting as the holding entity for the other three while HHI becomes entirely devoted to shipbuilding.
To meet with the guidelines for holding establishments, Hyundai Robotics must own 20 percent or more in its subsidiaries. The company currently owns 13.37 percent in the other three.
Once Hyundai Robotics increases its stakeholding in the other three, Chung Mong-joon, chairman of Asan Foundation who owns 10.15 percent in the four companies, would be able to command a stronger grip over management affairs through Hyundai Robotics.
By Yoon Jin-ho
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