Midst Elliot Management pressure Hyundai Motor cancels treasury shares worth $890 million

The measure is part of a wider scheme to boost shartholder’s returns.

On Friday, in a development that marks its first share cancellation in fourteen years, Hyundai Motor stated it plans on canceling treasury shares worth $890 million (960 billion won) in order to boost shareholder returns.

The development comes in the wake of Elliott Management ramping up pressure on Hyundai Motor while calling for a holding company structure and a share cancellation, among other suggestions.

On Thursday, Hyundai also reported that its car sales in the U.S. and China have dropped significantly and as a results its quarterly profits have halved to its near six-year low.

In a statement the company said, it plans on canceling treasury shares worth 560 billion won by July 27; it will also buy back and cancel shares worth another 400 billion won.

This is its first share cancellation since 2004.

Following Hyundai’s statement, its shares reversed their earlier losses and rose by 3.2% before trading 0.6 percent higher as of 0135 GMT.

($1 = 1,076.4000 won)

Advertisements


Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Strategy

Tags: , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: