Last updated Monday, March 27, 2017 2:35 pm GMT+8

Tuesday March 21, 2017
03:40 PM GMT+8

Advertisement

More stories

Hyundai vehicles are lined up in the company's presentation area during the North American International Auto Show in Detroit, Michigan January 10, 2017. — File picHyundai vehicles are lined up in the company's presentation area during the North American International Auto Show in Detroit, Michigan January 10, 2017. — File picSEOUL, March 22 — Hyundai Motor Co shares today rallied over nine per cent to their highest level in 22 months on hopes that its parent group controlled by chairman Chung Mong-koo may reorganise its structure.

Market speculation is that US activist hedge fund Elliott Management Corp may have bought a share in Hyundai Motor, South Korea's top automaker, analysts said. Elliott did not immediately comment. Hyundai Motor said it does not comment on market speculation.

Elliott last year pressured Samsung Electronics Co Ltd to restructure and pay a special dividend. The South Korean tech giant subsequently said it would consider creating a holding company and boost dividends.

Hyundai Motor Group, South Korea's No 2 conglomerate after Samsung Group, may hurry to overhaul its group structure as politicians call for reforms of family-owned conglomerates, following a graft scandal involving President Park Geun-hye, analysts said.

“The company is part of a particularly complex and suboptimal capital and corporate structure, and we see significant value that can be unlocked from restructuring,” Goldman Sachs said in a report on Hyundai Motor yesterday.

“In contrast to the consensus view that Hyundai Mobis would become the ultimate holding company, we see Hyundai Motor as the nexus for restructuring,” the report said.

Its affiliates, Kia Motors Corp and Hyundai Mobis Co Ltd, climbed more than four per cent. — Reuters

MORE ON MMOTV

Advertisement

MMO Instagram

Tweets by @themmailonline