Hyundai Strengthens Control of Units
Hyundai Group is strengthening management control of Hyundai Asan and other subsidiaries through cross-shareholdings among units.
Among units of the group led by Chairwoman Hyun Jung-eun are Hyundai Elevator, Hyundai Asan, Hyundai Merchant Marine, Hyundai Securities, Hyundai Logistics, and Hyundai Research Institute.
Hyundai Logistics Friday said it bought a 13.77 percent stake in Hyundai Asan from Hyundai Heavy Industries.
With the share purchase, Hyundai Group’s Chairwoman Hyun and other affiliates now hold a total of 63.04 percent stake in Hyundai Asan, a unit leading the group’s businesses in North Korea, from 49 percent.
Hyundai Merchant holds the largest stake of 36.86 percent in Hyundai Asan. Hyundai Asan also has an 8.23 percent stake of its own in the form of treasury shares.
Hyundai affiliates and friendly powers, including Hyundai Merchant and Hyundai Elevator, have a 49.42 percent share in Hyundai Logistics.
In the web of cross shareholdings, Hyundai Merchant controls Hyundai Securities. Hyundai Securities and other affiliates hold a 29.9 percent in Hyundai Elevator, the de facto holding company of the Hyundai Group.
Analysts say Hyundai Merchant has been exposed to risks of being taken over by foreign investors.
Geveran Trading, a British-based equity fund under the wing of a European shipping company, holds a 13.57 percent stake in the company.
After disclosing that it secured a 5.77 percent stake in Hyundai Merchant on Oct. 29, 2004, Geveran Trading has kept increasing its stake over the past few months.
Geveran has reportedly had close ties with Cape Fortune B.V with a 9.99 percent stake in Hyundai Merchant, Stavanger Fondsforvaltning AS holds 6.39 percent, and Lehman Brothers Inc-Customer’s Segregated holds 4.94 percent.
Though Hyundai Elevator is the largest shareholder of Hyundai Merchant with 17.16 percent, the possibility that foreign investors will focus on management control of the shipping company is high.
A Hyundai Merchant spokesman said, “There are few problems in maintaining the current structure as we have sufficient friendly forces to stave off any takeover attempt.’’
Kim Yon-se, The Korea Times