Friday, July 18th, 2014
SEOUL, KOREA - Hyundai Group has sold off its controlling stake in Hyundai Logistics to Orix Group of Japan. With the transaction, coupled with the selling of its liquefied natural gas carrier unit, the effort of Hyundai Group to improve its financial standing has entered a final stage.
The group said on July 17 that it disposed of an 88.8-percent stake, including 12.04 percent held by Hyundai Group chairwoman Hyun Jeong-eun, 47.67 percent by Hyundai Merchant Marine, 24.36 percent by Hyundai Global, and 3.34 percent by Hyundai Securities, at the cost of 600 billion won.
Orix and Hyundai will jointly establish a special-purpose corporation that would control Hyundai Logistics with paid-in capital of 340 billion won. Of this, 70 percent (240 billion won) will be invested by Orix, with the remaining 30 percent (100 billion won) chipped in by Hyundai Merchant Marine with the shares of Hyundai Logistics.
With the proceeds from the transaction, Hyundai Group will use it to improve its governance structure. For example, the chairperson and Hyundai Global will buy a 19.9-percent stake in Hyundai Elevator with the money from Orix. Once the plan goes through as planned, Hyundai Logistics will be able to get out of the cross-shareholding loop that connects Hyun Jeong-eun with Hyundai Global, Hyundai Logistics, Hyundai Elevator, Hyundai Merchant Marine, and Hyundai Global.