SEOUL, South Korea, May 21, 2018 /PRNewswire/ -- Hyundai Motor Group has decided to re-evaluate and revise its announced restructuring plans.
At board meetings held separately on the 21st of May by Hyundai Mobis and Hyundai Glovis, each company resolved to re-evaluate and revise the proposed spin-off merger between the two entities. New plans will be presented in due course.
In relation to this decision, the Hyundai Mobis and Hyundai Glovis shareholders meetings scheduled to take place on May 29 have each been canceled.
Hyundai Motor Company Vice Chairman Euisun Chung said: "Hyundai Motor Group sincerely appreciates the tremendous interest and valuable feedback it has received from shareholders and the market since the restructuring plans were announced"
He added: "After a thorough review, the relevant members of the Hyundai Motor Group, having listened carefully to the various opinions and candid advice from their shareholders and the market, ultimately found it necessary to postpone the restructuring. Hyundai Motor Group will continue to make every effort to engage its shareholders and the market in a transparent manner in the development of an updated plan."
"Going forward, we will continue to gather different opinions and take into consideration various assessments as we continue our mission to further enhance business competitiveness and improve corporate value throughout the Hyundai Motor Group," the Vice Chairman added. "We will also plan to strengthen communications with our shareholders and the market to live up to the expectations they have for the Group."
"The trust and full support of the Group's shareholders are prerequisites to any reorganization plan," said Vice Chairman Chung.
In March, the Hyundai Motor Group announced plans to improve its corporate governance structure in order to better respond to changes in the automotive industry and heightened regulatory demands.
At the time of announcement, Hyundai Motor Group stressed that streamlining its overall governance structure through business spinoffs and mergers between related businesses was the optimal plan to strengthen corporate value while also unwinding circular shareholding. Hyundai Motor Group can also put itself in a position to accelerate its members' shareholder return policies through this strengthening of the Group's corporate value.
"The Group faces an important need for bold and swift reform to secure future competiveness and sustainability," said the Vice Chairman. "The Group will continue to strive to create a virtuous cycle in which we can maximize corporate value, which in turn will increase shareholder return."
ABOUT HYUNDAI MOTOR GROUP
Hyundai Motor Group is a global corporation that has created a value chain based on automobiles, steel, and construction and includes logistics, finance, IT and service. With about 250,000 employees worldwide, the Group's automobile brands include Hyundai Motor Co. and Kia Motors Corp. Armed with creative thinking, cooperative communication and the will to take on all challenges, we are working to create a better future for all.
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SOURCE Hyundai Motor Group