Hyundai Genuine to sell new shares worth 100 bln won to acquire stake in subsidiary

By Nam Kwang-sik

SEOUL, Dec. 7 (Yonhap) — Hyundai Genuine Co. said Tuesday its board of directors has decided to sell new shares and raise 100 billion won (US$846 million) to acquire a stake in its subsidiary, Hyundai Doosan Infracore.

Hyundai Genuine will issue 200,000 common shares to be sold for 500,000 won apiece to its holding company, Hyundai Heavy Industries Holdings Co. (HHIH), the company said in a regulatory filing.

The proceeds from the share sale will “be used to acquire a stake in Hyundai Doosan Infracore,” a company spokesman said.

In a separate filing, HHIH said Hyundai Genuine plans to buy 31.9 million new shares of Hyundai Doosan Infracore for 191 billion won on Dec. 16, raising its stake to 29.5 percent in the subsidiary.

On Monday, Hyundai Doosan Infracore said it will sell 115.1 new common shares at 5,980 won per share, which will help the company raise about 688 billion won.

The new shares are slated to be listed on the main local stock market on Dec. 28.

HHIH is the holding company of global shipbuilding conglomerate Hyundai Heavy Industries Group, while Hyundai Genuine is the subholding company of the group.

Unlisted Hyundai Genuine has two subsidiaries under its wing — South Korea’s top construction equipment maker Hyundai Doosan Infracore and Hyundai Construction Equipment Co.