Hyundai Home Shopping to Be Delisted After 16 Years as Group Simplifies Structure
Creatrip Team
6 months ago
Hyundai Department Store Group will make Hyundai Home Shopping a wholly owned unit of Hyundai G.F. Holdings through a share exchange, ending dual listings and aiming to boost corporate value. After the exchange, Hyundai Home Shopping will be split into an investment company (to merge with Hyundai G.F. Holdings) and an operating company focused on home shopping and new businesses; the operating company’s listed shares will be delisted (상장폐지) — the first delisting since its KOSPI listing in 2010. Brokers say the move could reduce the “holding-company discount” from dual listings, improve liquidity, and prompt a revaluation. Hyundai G.F. Holdings and Hyundai Home Shopping hit record highs on the news. To protect minority shareholders, the deal keeps dividend per share (DPS) at current levels (KRW 2,800) and Hyundai G.F. Holdings plans share buybacks worth KRW 100 billion to be canceled within the year. The share-exchange ratio is set at 1:6.36 and must be approved at an April shareholders’ meeting; if passed, exchange and delisting steps occur between June and July.
