Hyundai set for showdown with Elliott Management over $6.3bn dividend payout call
Shareholder activists a pain in the neck for the South Korean car manufacturer as its ultimate plan is to push for a restructuring of the group
Seoul — Hyundai Motor Group on Tuesday rejected demands by US activist investor Elliott Management for a combined 7-trillion won ($6.3bn) dividend payout and new board members, complicating efforts to revamp South Korea’s second-biggest conglomerate. Opposition from Elliott led Hyundai to drop an earlier attempt to overhaul its ownership structure, and executive vice-chair Euisun Chung pledged in January to complete a restructuring expected to pave the way for him to succeed his father Mong-Koo Chung as group chair. “I think Elliott expected that its proposals would be rejected by Hyundai. Its purpose is to rally support from other shareholders for a vote on a restructuring plan,” Park Ju-gun, head of corporate analysis firm CEO Score, said. Elliott, which was not immediately available for comment, had proposed a 2018 dividend of 4.5-trillion won ($4bn) for Hyundai Motor and 2.5-trillion won ($2.2bn) for auto parts supplier Hyundai Mobis, regulatory filings show. The two had propose...
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