Hyundai Motor Co to spend $228.3 million for repurchase of shares

The Elliot Management-backed move, will boost shareholder’s return. The buyback will include common and preferred stocks.

On Friday, Hyundai Motor Co stated, it would spend $228.3 million (255 billion won) to buyback its common and preferred stocks so as to stabilize its stock prices and boost investor returns.

With the news reaching the market, shares of the South Korean carmaker rose by 4%.

In 2018, Hyundai Motor’s shares have fallen by more than 30%. Earlier this month, activist hed fund, Elliott Management had renewed its pressure on the automaker to return its “excess capital” to shareholders.

In May 2018, Hyundai Motor Group, backed by founding family members, had shelved a plan aimed that restructuring the ownership of the group; the move would have given the son of Hyundai Motor Group’s aging chairman more control of the conglomerate. The move was opposed by Elliott.

In a regulatory filing, Hyundai stated it would buy back common stocks worth 214 billion won and preferred stocks worth 41 billion won.

The buyback is expected to start on December 3, 2018 and will end on February 28, 2019.

($1 = 1,117.0500 won)

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