Hyundai Commercial, Hyundai Card Pursue Purchase of Small Shareholders' Stakes

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[Asia Economy Reporter Yu Je-hoon] Hyundai Commercial is set to purchase shares from small shareholders of Hyundai Card.

On the afternoon of the 2nd, Hyundai Commercial held a board meeting and approved the purchase of shares held by small shareholders of its affiliate, Hyundai Card, the company announced on the 3rd. The target shares are 4,851,112 common shares of Hyundai Card held by 1,946 small shareholders.

Earlier, on the 19th of last month, Hyundai Card revealed that approximately 20% of the shares held by financial investor (FI) Affinity Consortium were acquired by strategic investor (SI), Taiwan's Fubon Financial Group. Along with this, Hyundai Card decided not to proceed with the initial public offering (IPO) requested by Affinity.

Hyundai Commercial explained that as a member of Hyundai Motor Group, the largest shareholder of Hyundai Card, it decided to proceed with this share purchase to provide small shareholders, who had expectations of profit realization through an IPO, with an opportunity for asset liquidity.

The purchase price is set at 13,757 KRW per share, which is similar to the recent major shareholder transaction price including a control premium. Additionally, considering that Hyundai Card will pay dividends on the 1st of next month through an interim dividend, the actual profit realized by small shareholders is expected to be even greater, according to the company.

A Hyundai Commercial official stated that the purchase price was set higher than the market average to provide small shareholders with an opportunity to realize profits through liquidity, and that there are no plans for additional public tender offers for small shareholders' shares after this purchase.

The subscription period is from the 20th of this month to the 15th of next month, and shareholders wishing to sell can apply through the lead manager, NH Investment & Securities.

Meanwhile, Hyundai Motor Group currently holds a total of 77% of Hyundai Card shares, with Hyundai Motor and Kia holding 48.44%, Hyundai Commercial 28.56%, and Fubon Financial Group holding 19.98%. Small shareholders hold approximately 3.02%.

This content was produced with the assistance of AI translation services.