Four affiliates within Hyundai Department Store Group, including Hyundai Department Store and Hyundai Green Food, will repurchase their own shares worth approximately 30 billion won to enhance shareholder value. This is a separate additional shareholder return policy from the value-up plan announced at the group level last November.
Hyundai Department Store announced on the 9th that it will acquire 339,433 shares (1.5% equity) of its own stock worth 21.1 billion won. Additionally, Hyundai Department Store reported that it will sell 881,352 shares (7.34% equity) of Hyundai Home Shopping that it currently holds to Hyundai G.F Holdings. The transaction price per share is 58,920 won, which is a 20% premium over the closing price of 49,100 won on the 9th, bringing the total transaction amount to 51.9 billion won.
The funds necessary for the share repurchase will be utilized from the cash generated by the sale of Hyundai Home Shopping shares, and the remaining funds will also be used for the repurchase of own shares.
A representative from Hyundai Department Store explained, "The acquisition of own shares reflects the management's strong will to return the one-time profit generated from the sale of Hyundai Home Shopping equity back to shareholders and to enhance the undervalued corporate value." He added, "Through this Hyundai Home Shopping equity transaction, Hyundai Department Store has resolved the shortcomings of the holding company activity restrictions under fair trading law, and Hyundai G.F Holdings, as the largest shareholder, can further strengthen responsible management over its sound subsidiary, Hyundai Home Shopping."
Earlier, Hyundai Ezwel and Hyundai Green Food announced on the 8th that they will acquire approximately 710,000 shares (3.0% equity) and approximately 170,000 shares (0.5% equity), respectively. The amounts are 4 billion won and 2.5 billion won, respectively. This marks the first time Hyundai Ezwel has repurchased its own shares since joining Hyundai Department Store Group. On the 7th, Hyundai Futurenet decided to acquire approximately 1.1 million shares (1.0% equity) for about 3.2 billion won.
A representative from Hyundai Department Store Group noted, "Hyundai Green Food plans to immediately retire the own shares it has acquired since February, once the repurchase is completed," adding, "As for Hyundai Department Store, Hyundai Ezwel, and Hyundai Futurenet, we plan to conduct own share retirements at an appropriate time, comprehensively assessing future market conditions."
He added, "Major listed companies within the group are excessively undervalued compared to their substantial value, including market dominance, cash generation capacity, and future growth potential in each business sector," and stated, "We will continue to actively implement differentiated shareholder return policies to enhance corporate value going forward."