Hyundai Motor family sold $1.1 billion stake in affiliate: sources
SEOUL (Reuters) - The chairman of Hyundai Motor Co (005380.KS: Quote) and his son successfully sold their entire 13 percent stake in shipping and logistics affiliate Hyundai Glovis Co Ltd (086280.KS: Quote) offered in a block deal worth about 1.16 trillion Korean won ($1.07 billion), two persons with direct knowledge of the matter said on Friday.
Chairman Chung Mong-koo and son Chung Eui-sun sold their 5.02 million shares at 17 percent below the asking price in last month's unsuccessful offering, in a bid to avoid South Korea's antitrust scrutiny.
They also committed not to sell their remaining 29.99 percent stake in Hyundai Glovis under a longer lockup period of nearly 2 years this time, helping ease uncertainty about the affiliate as succession looms.
They sold 5.02 million shares in Hyundai Glovis at 230,500 won each, versus an offered range of 227,500-232,500 won, according to the sources who declined to be identified because of the confidentiality of the sale.
The sale was at a discount of 2.7 percent below the stock's closing price of 237,000 won on Thursday.
A Hyundai Motor spokesman confirmed the pricing.
Under the resumed deal, the Chungs' remaining 29.99 percent stake in Hyundai Glovis will be under lock-up for 720 days, meaning it will not be sold for nearly 2 years.
This helped ease investor concerns that the two Chungs may further sell down their remaining stakes in Hyundai Glovis as part of the group's restructuring - uncertainty that hobbled last month's sale attempt.
Hyundai Motor said on Thursday the stake sale has no bearing on the group's reorganization of management structure. It added the deal was aimed at complying with new antitrust rules taking effect this month and restricting intergroup transactions at South Korea's family-owned conglomerates. Continued...