Hyundai Department Store Group has entered the final steps of its transition to a holding company. It is accelerating the organization of its equity to meet the action restriction requirements of its holding company, Hyundai G.F Holdings. It has decided to sell the equity of DAEWON KANG UP and Hyundai Futurenet to its subsidiaries.
According to the Financial Supervisory Service's electronic disclosure system on the 24th, Hyundai G.F Holdings will purchase 10.1% of the equity in its subsidiary DAEWON KANG UP from Hyundai Home Shopping (4,575,695 shares, 7.7%) and Hyundai Department Store (1,488,114 shares, 2.4%). The equity held by Hyundai G.F Holdings in DAEWON KANG UP will increase from the existing 22.7% to 32.8%. The transaction price per share is about 4620 won, which is a 20% premium over the closing price of 3850 won, totaling approximately 28.8 billion won. The transaction is scheduled for one month later on Feb. 24.
Hyundai Home Shopping also plans to purchase 31,459,590 shares (28.5%) of Hyundai Futurenet held by Hyundai G.F Holdings and Hyundai Department Store. The transaction price per share is set at 4290 won, which is a 20% premium over the closing price of 3575 won. The total transaction amount is expected to reach 135 billion won. At this time, Hyundai G.F Holdings will transfer 6,534,810 shares (5.9%) for 28 billion won, and Hyundai Department Store will transfer 24,924,780 shares (22.6%) for 106.9 billion won to Hyundai Home Shopping.
In this regard, a representative of Hyundai Department Store Group noted, "At a time when the deadline for the holding company’s action restriction requirements is imminent, we conducted the equity transaction between subsidiaries in accordance with legal procedures and regulations to minimize the impact on the stock price."