SEOUL/HONG KONG: The chairman of Hyundai Motor Co and his son on Thursday offered to sell a $1 billion stake in logistics affiliate Hyundai Glovis , a month after a similar attempt failed because investors questioned its rationale.
Chairman Chung Mong-koo and son Chung Eui-sun are offering a combined 13.4 percent stake, or 5.02 million shares, in Hyundai Glovis at 227,500 won-232,500 won a share, according to a term sheet seen by Reuters.
The sale price is at a discount of up to about 20 percent from the 264,000 won to 277,500 won range of last month's failed sale. It is also lower than the stock's closing price on Thursday.
If the entire stake isn't sold, deal manager Citigroup will acquire the remainder, Hyundai Motor said in a statement.
Many institutional investors stayed away from last month's stake offer in Hyundai Glovis after its parent failed to give deal manager Citigroup enough details about what it would do with the proceeds, a person privy to deal discussions said at the time.
Investors had hoped that buying shares in the logistics firm would give them a front-row seat in the huge family-owned conglomerate's restructuring ahead of an expected generational leadership change.
Hyundai Motor on Thursday said the deal was revived to comply with new anti-trust rules taking effect this month, and have no bearing on the group's reorganisation of management structure, it added.
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