À̹ÌÁö È®´ë Amid intensifying proxy war between U.S. funds and Hyundai Motor, South Korea¡¯s Truston Asset Management Co. holding a marginal interest in Hyundai Mobis Co. and Hyundai Glovis Co. voiced support for the Korean automaking conglomerate¡¯s outline to merge the two entities.
¡°Hyundai Mobis¡¯ plan is expected to resolve Hyundai¡¯s cross-shareholding ties and complies with domestic laws,¡± the asset manager said in a statement on Thursday.
Since there is no better alternative, the fund decided to respect the management decision.
Truston holds 86,375 shares or 0.09 stake in Hyundai Mobis and 70,503 shares or 0.19 stake in Hyundai Glovis. Its show of support comes as Hyundai Motor seemingly has been losing in the proxy war ahead of the pivotal May 29 shareholders¡¯ meetings.
Shares of Hyundai Mobis closed Friday down 0.63 percent at 239,000 won.
The country¡¯s second largest conglomerate Hyundai Motor Group announced in March that it will spin off Hyundai Mobis¡¯ module and after-sales service businesses and merge them with Hyundai Glovis, a logistics unit, to untangle its complex shareholding structure. The auto parts making unit is at the center of the group¡¯s cross-shareholding with other affiliates including Hyundai Motor, Kia Motors, Hyundai Steel and Hyundai Glovis.
The scheme faced contest from U.S. activist fund Elliott Management and proxy advisors Sustinvest and Glass Lewis, which publicly opposing the plan claiming it would bring little benefits to shareholders. They also argued that the merger ratio of 0.61:1 of Hyundai Mobis module and after-sales service businesses and Hyundai Glovis is unfair, as it underestimates the value of the businesses while overestimating the auto parts business to be remained at Hyundai Mobis.
Foreign investors are estimated to own about combined 48 percent in Hyundai Mobis that currently acts as the de facto holding company of Hyundai Motor family.
The group¡¯s top management including Hyundai Motor Vice Chairman Chung Eui-sun has been campaigning to win over friendly votes, suspecting the motives by overseas funds in opposing its reform outline.
Truston said the spinoff and merger plan is ¡°the best option to enhance shareholder value in the mid- to long-term,¡± and it also found the merger ratio was calculated fairly. The restructuring would benefit shareholders of Hyundai Glovis, the company said, and ¡°we found no evidence that the plan would damage shareholder value.¡±
Truston who has ample experience in managing sovereign funds of many countries has aggressively expressed its opinions on major corporate issues for shareholders. Its disapproval rating over the past six years amounted to 10.2 percent, according to data from the Korea Corporate Governance Service, the highest among the nation¡¯s asset managers.
By Yoo Joon-ho and Choi Mira
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]