[THE INVESTOR] Hyundai Group on July 15 lost control over Hyundai Merchant Marine, with the shareholders approving the seven-to-one reduction of capital held by group chairwoman Hyun Jeong-eun and affiliates.

Once all related processes are over, HMM will become a subsidiary of the Korea Development Bank. 

The stakes held by Hyun, Hyundai Elevator and Hyundai Global will be reduced to 3.64 percent from the current 22.64 percent. Hyundai Global is the de facto holdings firm for Hyundai Group.

Once the company’s creditors execute the promised debt/equity swap, the stakes held by the three will be reduced to 0.5 percent. The KDB and other creditors will hold about 40 percent of the company once new shares are issued on Aug. 5.

The KDB and other creditors had promised a debt/equity swap if the company meets all conditions. The company fulfilled the last condition -- joining an international shipping alliance -- on July 14. On July 14, HMM signed on to join the 2M alliance, the vessel sharing partnership founded by Maersk and MSC, from April next year.

HMM is expected to be removed from Hyundai Group during the second half of the year, and the group will be removed from the list of large business groups subjected to tougher fair trade laws.

By Choi He-suk (cheesuk@heraldcorp.com)