April 20, 2024

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[THE INVESTOR] Hyundai Motor has sold its entire stake in Korea Aerospace Industries as it seeks to focus on its core business, South Korea’s largest automaker said on Nov. 23.

Hyundai sold 4.73 million shares of Korea’s sole aircraft maker, equivalent to 4.85 percent stake, in an off-market block trade. The deal is expected to raise up to 320 billion won (US$272.72 million) based on KAI’s share price of 68,300 won the previous day. 

“The divestment is to focus on our mainstay auto business,” said a Hyundai official.

Earlier in March, the automaker fetched 342 billion won by selling a 5 percent stake in KAI, cutting its position by half from the previous 10 percent.

Foreign investors hold the largest stake in KAI, with 26.72 percent, followed by the state-run Korea Development Bank (19.02 percent), National Pension Fund (9.14 percent), Export-Import Bank of Korea (7.74 percent) and Hanwha Techwin (6 percent).

KAI shares closed at 67,100 won on the Seoul bourse on Nov. 23, down 1.76 percent from the previous day’s close. 

By Ahn Sung-mi (sahn@heraldcorp.com)