April 20, 2024

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[THE INVESTOR] As part of the Hyundai Motor Group’s governance restructuring, Hyundai Mobis might turn into a holding company, said Mirae Asset Daewoo on March 22. 

The group will convert it to a holding company, spin off Hyundai Motor and Kia Motors, and combine both carmakers’ investment divisions to complete the transformation, forecast analyst Jeong Dae-won. 

The circular shareholding structure that connects Hyundai Mobis, Hyundai Motor and Kia Motors could be internalized, and can naturally meet the requirements for a holding company’s stake in subsidiaries (20 percent for public and 40 percent for private) without separate stake swap among the affiliates, explained the analyst. 

The governance reshuffle is expected to promote shareholders’ values, according to Jeong. As the group only owns about 30 percent stake in Mobis, it needs consent from external shareholders to pass the agenda, which will motivate the company to carry out active shareholder friendly policies similar to Samsung Electronics, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)