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Hyundai Group decides to sell financial units for cash flow
Publication Date : 23-12-2013
Hyundai Group said it would secure around 3.3 trillion won (US$3.1 billion) in emergency funds by selling its three financial units, including Hyundai Securities Co. This is part of its efforts to address the recent liquidity concerns raised by the market.
“Though we have enough cash for the first half of next year, we have taken strong measures to ease the concerns of the market,” a Hyundai spokesman said. “We have repeatedly pondered the sale of financial organisations, which are among Hyundai Group’s mainstays.”
By selling off Hyundai Securities Co., Hyundai Asset Management and Hyundai Savings Bank Co., the group is expected to obtain around 70 million to 1 trillion won.
On top of this, Hyundai Group will secure 1.5 trillion won by selling shares for Hyundai Merchant Marine Co.’s port terminal projects.
Financial authorities recently delayed approval of Hyundai Elevator’s application for a capital increase. Hyundai Elevator’s major shareholders include group chairwoman Hyun Jeong-eun and several group affiliates.
While the company sought to issue 6 million fresh shares, worth 217.5 billion won, the Financial Supervisory Service has rejected the application.
Saying that the authorities demanded a revised proposal, an FSS official cited instability in the conglomerate’s shareholding structure and a recent drop in stock prices of major affiliates for the initial disapproval.