Hyundai Motor vice chair buys $22.4mn in Hyundai Motor, Hyundai Mobis shares

2020.03.24 14:37:55 | 2020.03.24 17:47:48

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Hyundai Motor Group’s executive vice chairman Chung Euisun purchased additional 9 billion won ($7 million) worth shares in the Korean auto conglomerate’s key units Hyundai Motor Co. and Hyundai Mobis Co. on Tuesday, just a day after it bought 19 million worth in the two companies to win shareholders’ confidence in the battered stocks.

The vice chairman heads the managing board of Hyundai Motor and Hyundai Mobis.

Hyundai Motor in a regulatory filing on Tuesday reported that Chung bought 65,464 shares in the firm at 4.5 billion won. He paid 68,567 won per share, about the same as previous day’s closing price of 68,900 won.

Hyundai Mobis also disclosed that Chung acquired 33,826 shares at 132,825 won apiece or 4.5 billion won in total.

His treasury stock acquisition comes just a day after he bought in Hyundai Motor and Hyundai Mobis shares, worth 190 billion won in total.

According to public disclosures made by the two companies on Monday, Chung acquired 139,000 shares in Hyundai Motor at 9.51 billion won (68,435 won per share) and 72,552 shares in Hyundai Mobis at 9.5 billion won (13,789 won per share).

With the purchase made over two straight days, Chung now holds 1.88 percent stake in Hyundai Motor, up from previous 1.81 percent. His stake in Hyundai Mobis stands at 0.11 percent, added from zero.

The last time Chung increased stake in Hyundai Motor was in 2015 when he took over 3.16 million shares from Hyundai Heavy Industries and 1.85 million shares from Hyundai Samho Heavy Industries.

On Tuesday, Hyundai Motor stock closed 8.56 percent higher at 74,800 won and Hyundai Mobis up 8.24 percent at 144,500 won.

Hyundai Motor Group’s stocks have been severely battered by the recent financial turmoil triggered by the coronavirus outbreak.

Hyundai Motor stock had traded at around 135,000 won on expectation of earnings recovery until mid-February but more than halved to 65,000 won by last week. Hyundai Mobis in mid-February also had traded at nearly double the current price of around 140,000 won.

Chung’s treasury stock purchase was joined by other senior executives, including president Lee Won-hee (1,391 shares) and president Seo Bo-shin (4,200 shares).

A Hyundai Motor Group official said Chung and top executives’ stake purchase was to express their strong determination to lead out the company out of the crisis created by the COVID-19 pandemic.

By Kang Gye-man and Cho Jeehyun

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