Activist hedge fund Elliott sells stakes in Hyundai Motor companies: paper

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Activist hedge fund Elliott sells stakes in Hyundai Motor companies: paper
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Elliott Management sold all its shares in Hyundai Motor Group companies last yea...

Its efforts to shake up the family-run conglomerate had some success when a 2018 Hyundai-backed shareholder vote on a restructuring proposal, seen aimed at aiding the handing of the group’s reins to heir apparent Euisun Chung, was canceled.

But in March 2019, the companies’ shareholders rejected Elliott’s demands for 7 trillion won in one-off dividend payments and seats on the boards of Hyundai Motor and Hyundai Mobis. “From Hyundai Motor’s perspective, Elliott kept talking about excess capital and asking for dividends, a lot of money. But the company rejected it by insisting it has a lot of investment needs,” said Lee Han-joon, analyst at KTB Investment & Securities.

“I’m sure they will breathe a little easier as Elliott leaves.. they will have more room to utilize capital,” Lee said. A recent recovery in the share prices of the Hyundai firms may have influenced the move, the newspaper said, citing the source.

 

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