U.S. activist fund Elliott to vote against Hyundai restructuring plan (updated)

Hyundai Glovis

10/05/2018 23:30

* Elliott says plan not enough to fix 'valuation discounts'
    * Elliott urges shareholders to vote against plan 
    * Hyundai Motor, Mobis previously announced share
cancellations

 (Adds Elliott comment, background)
    SEOUL, May 11 (Reuters) - U.S. activist fund Elliott
Management said late on Thursday that it will vote against
Hyundai Motor Group's restructuring plan and urged other
shareholders to vote against the plan for South Korea's
second-largest conglomerate. 
    Hyundai Motor Group in March unveiled reforms aimed at
simplifying its complex ownership structure, which will be put
to a shareholder vote on May 29.  urn:newsml:reuters.com:*:nL3N1RA1JU urn:newsml:reuters.com:*:nL3N1SH46I
    Elliott said in a statement it believes the restructuring
plan is "based on flawed assumptions," adding that the
conglomerate's recent "token measures" on share buybacks and
cancellation of existing shares, while positive, were not
enough. 
    "More significant measures are needed to address the
long-unresolved issues at the Group that have led to significant
valuation discounts and underperformance at Hyundai Mobis,
 012330.KS  Hyundai Motor  005380.KS  and Kia  000270.KS ,"
Elliott said. 
    A spokeswoman for Hyundai Motor did not have an immediate
comment. 
    Under the plan, auto parts maker Hyundai Mobis will spin off
its domestic module and after-service parts businesses and merge
them with Hyundai Glovis,  086280.KS  a logistics firm. 
    Elliott, which disclosed in April that it holds more than $1
billion worth of shares in three key affiliates of Hyundai Motor
Group, previously called on the company to adopt a holding
company strategy and appoint more independent board members.
 urn:newsml:reuters.com:*:nL3N1S044X 
    Hyundai Motor said in late April it will cancel $890 million
worth of treasury shares, its first stock cancellation in 14
years, while Hyundai Mobis said earlier this month it would
cancel about 600 billion won ($557.21 million) in treasury
shares from next year and pay dividends in more installments.
 urn:newsml:reuters.com:*:nL3N1S41FJ  urn:newsml:reuters.com:*:nL3N1S91S5

 (Reporting by Joyce Lee and Hyunjoo Jin; editing by Phil
Berlowitz and Cynthia Osterman)
 ((jungyoon.lee@thomsonreuters.com; +82-2-3704-5609; Reuters
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net))