April 25, 2024

• 

[THE INVESTOR] Hyundai Mobis and Kia Motors will see their stock prices rise as merger of the auto parts maker and Glovis has been canceled, said Samsung Securities on May 23. 

The revised restructuring plan will now include adjustment of merger ratio and is likely to be more advantageous to Hyundai Mobis, said analyst Im Eun-yeong. Meanwhile, Kia Motors’ 16.88 percent stake in the firm will be recognized for more value as well.

Considering that the original plan, deemed more favorable to Hyundai Glovis stakeholders, was dropped following opposition from Hyundai Mobis stakeholders, the decision will hurt the former’s stock price. A new target price and recommendation will be suggested when the new restructuring proposal comes out, said Im.

As for Hyundai Motor, although it has net cash reserves of 15 trillion won (US$13.91 billion), but is unlikely to further reward stakeholders since it will have to spend 330 billion won to repurchase its stocks up to 1 percent, according to the analyst. 

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