1.7 Trillion Won Gone
The stock prices of Hyundai Motor Company and Hyundai Glovis moved in opposite directions as Hyundai Motor Group Chairman Chung Mong-koo and Vice Chairman Chung Eui-son failed to sell their Hyundai Glovis shares.
According to the Korea Exchange, Hyundai Mobis gained 11.55 percent from the previous session on Jan. 13 to close at 265,500 won (US$245) per share. Meanwhile, Hyundai Glovis lost 15 percent upon the opening of the session and closed at 255,000 won (US$236) per share. The fall to the lower limit decreased the aggregate market value of Hyundai Glovis by 1.7 trillion won (US$1.6 billion) to 9.5625 trillion won (US$8.8386 billion).
On the previous day, the news came out that the owners would sell 5,022,170 out of the 16,271,460 shares they own in Hyundai Glovis, to decrease their ownership from 43.39 percent to 30 percent. Although the block deal failed, market experts regarded it as a chance to predict the future direction of the Hyundai Motor Group’s corporate governance.
Until recently, it was said that Hyundai Motor Company would be merged with Hyundai Glovis and Hyundai Mobis for the Hyundai Motor Group to be run by a holding company. Expectations were high for the role of Hyundai Glovis, with the vice chairman owning 32 percent of it as its largest shareholder. These expectations were reflected in the stock prices of Hyundai Glovis and Hyundai Mobis.
However, the failed attempt at this time implies that the group would opt for a reshaping of the governance structure led by Hyundai Mobis, instead of a merger, and stock market experts are now betting on a quick recovery of the valuation of Hyundai Mobis.