SEOUL, Nov. 10 (Korea Bizwire) – Hyundai Motor Co. Vice Chairman Chung Eui-sun bought an additional stake in the country’s leading automaker on Tuesday as part of efforts to tighten his grip on the company and protect shareholders’ value, the company said.
Chung, the son of Hyundai Motor Group Chairman Chung Mong-koo, spent nearly 300 billion won (US$259.3 million) in purchasing around 1.84 million shares, or 0.84 percent, in Hyundai Motor from Hyundai Samho Heavy Industries Co.
The purchase was made during after-hour trading and Chung bought the shares at 162,500 won apiece, the closing price on Tuesday.
Chung now holds about 5.02 million shares in Hyundai Motor, raising his stake from 1.44 percent to 2.28 percent. This comes after Chung bought 3.16 million shares in the auto giant from Hyundai Heavy Industries Co. in September.
Hyundai Samho is an affiliate of Hyundai Heavy Industries.
Company officials said that the negotiations for the stock deal have been under way as Hyundai Samho Heavy sought to improve its financial status.
Hyundai Motor officials said that Chung’s additional purchase of the shares is intended to prevent them from ending up in the hands of third parties, which could hamper stable management and the overall shareholder value.