South Korea's Hyundai Mobis to meet Elliott next week - sources

NH Investment & Securities Co

06/04/2018 02:04

SEOUL/NEW YORK, April 6 (Reuters) - South Korea's Hyundai
Mobis  012330.KS  plans to meet U.S. activist hedge fund Elliott
Management next week, two sources told Reuters, after Elliott
launched a campaign to pressure Hyundai Motor Group to improve
governance and boost returns.
    The meeting would take place in Europe as part of Hyundai
Mobis' investor conference sponsored by Citi, one of the two
sources familiar with the matter said, without providing more
details on what would be discussed or who would attend.  
    A Hyundai Mobis spokesman declined to comment. 
    Auto-to-steel giant Hyundai Motor Group announced a plan
last week to streamline its complex ownership structure as it
responds to calls from the government and investors for greater
transparency and better governance at family-controlled
conglomerates, or chaebols.  urn:newsml:reuters.com:*:nL3N1RA1JU
    Elliott Management revealed on Wednesday that it held more
than $1 billion worth of shares in three Group affiliates,
including auto parts-maker Hyundai Mobis which would become
Hyundai's de facto holding company under the restructuring plan.
 urn:newsml:reuters.com:*:nL4N1RG5BG
    The plan, which requires approval from two-thirds of shares
that are voted, has been criticised by some investors for
stripping Mobis of valuable assets and favouring the controlling
Chung family at the expense of shareholders. Questions about
synergies arising from the deal also have been raised.  
    Shareholder activism is rare in South Korea but the chaebols
are under mounting pressure to reform after a corruption scandal
last year led to the jailing of Samsung Group's heir apparent
and the ouster of former President Park Geun-hye.
    South Korean brokerage NH Investment & Securities
 005940.KS  said it is advising Hyundai on the reorganisation
plan.    

 (Reporting by Hyunjoo Jin in SEOUL and Liana B. Baker in New
York; Additional reporting by Soyoung Kim in SEOUL; Editing by
Stephen Coates)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))