HMG chairman Expected to Increase Stake in Mobis

Hyundai Motor Group chairman Chung Eui-sun

The stock price of Hyundai Mobis rose 5.66 percent to close at 317,500 won per share on April 8. The highest price and rate of increase in the session are 321,000 won and 7.36 percent, respectively. The latter is the highest since Jan. 8 this year.

According to experts, the stock price was raised mainly by the rumor that Hyundai Motor Group chairman Chung Eui-sun would sell Hyundai Glovis shares and buy Hyundai Mobis shares.

Hyundai Motor Group has a circular ownership structure consisting of Hyundai Mobis, Hyundai Motor Co. and Kia, and it has been said for a while that the chairman needs to own more of Hyundai Mobis to better control the group. At present, the chairman has only 0.32 percent of Hyundai Mobis.

It is predicted that the chairman will reduce his Hyundai Glovis shareholding by 10 percentage points or so this year. According to the Monopoly Regulation and Fair Trade Act revised late last year, internal transaction regulations on listed companies will be applied to every business group subsidiary in which the group owner’s shareholding is 20 percent or more, instead of 30 percent or more, starting from next year. In Hyundai Glovis, the owner family’s current shareholding is 29.99 percent, including the chairman’s 23.29 percent.

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