|
Earlier this month, Elliott disclosed that it holds more than $1
billion worth of shares in three key affiliates of Hyundai Motor
Group and called for a "more detailed roadmap" as to how the
group will improve corporate governance, optimize balance sheets
and enhance capital returns.
The three affiliates are Hyundai Mobis <012330.KS>, Hyundai
Motor Co <005380.KS> and Kia Motors <000270.KS>.
The giant autos-to-steel group last month announced a plan to
streamline its ownership structure, responding to calls from the
government and investors for greater transparency and better
governance at family-controlled conglomerates, or chaebols.
"Elliott is encouraged that the Group has acknowledged the need
for an improved ownership structure. However, the unwinding of
the current circular shareholding by itself...lacks clear
benefits to minority shareholders," Elliott said in a statement.
Other steps it proposed included cancelling treasury shares and
adding more independent board members.
A Hyundai Motor Co spokeswoman did not have an immediate
comment.
It is Elliott's latest challenge to South Korea's family-run
conglomerates after it forced Samsung Electronics Co Ltd
<005930.KS> to increase shareholder returns in 2017, and comes
amid a government campaign to boost investors' power in a
country where shareholder activism is rare.
(Reporting by Hyunjoo Jin, Additional reporting by Ju-min Park;
Editing by Muralikumar Anantharaman)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
