SEOUL: The chairman of Hyundai Motor Co and his son successfully sold their entire 13 percent stake in shipping and logistics affiliate Hyundai Glovis Co Ltd offered in a block deal worth about 1.16 trillion Korean won ($1.07 billion), two persons with direct knowledge of the matter said on Friday.
Chairman Chung Mong-koo and son Chung Eui-sun sold their 5.02 million shares at 17 percent below the asking price in last month`s unsuccessful offering, in a bid to avoid South Korea`s antitrust scrutiny.
They also committed not to sell their remaining 29.99 percent stake in Hyundai Glovis under a longer lockup period of nearly 2 years this time, helping ease uncertainty about the affiliate as succession looms.
They sold 5.02 million shares in Hyundai Glovis at 230,500 won each, versus an offered range of 227,500-232,500 won, according to the sources who declined to be identified because of the confidentiality of the sale.
The sale was at a discount of 2.7 percent below the stock`s closing price of 237,000 won on Thursday.
A Hyundai Motor spokesman confirmed the pricing.
Under the resumed deal, the Chungs` remaining 29.99 percent stake in Hyundai Glovis will be under lock-up for 720 days, meaning it will not be sold for nearly 2 years.
This helped ease investor concerns that the two Chungs may further sell down their remaining stakes in Hyundai Glovis as part of the group`s restructuring - uncertainty that hobbled last month`s sale attempt.
Hyundai Motor said on Thursday the stake sale has no bearing on the group`s reorganisation of management structure. It added the deal was aimed at complying with new antitrust rules taking effect this month and restricting intergroup transactions at South Korea`s family-owned conglomerates.
Deal managers were Citi and NH Investment & Securities, unlike last month`s deal when Citi was the sole manager.
