“Because portions of these letters were selectively provided to the press and others, Elliott has decided to make the full contents of the letters publicly available in the interest of providing full transparency,” Elliott Advisors said in a statement. The letters can be seen online at www.acceleratehyundai.com.
Despite Hyundai’s promise to communicate with all stakeholders before carrying out its restructuring plans, “Elliott has been unable to engage in any productive discussion with HMG with respect to the restructuring since then,” it said, referring to Hyundai Motor Group, which encompasses Hyundai Mobis, Hyundai Motor Company and Kia Motors.
Elliott has also urged Hyundai to engage all stakeholders in reforming the conglomerate’s corporate structure so that it is more sustainable. Critics have said the present structure, in which the executives of some affiliates hold stock in other affiliates, allows powerful families to exercise undue influence.
The US hedge fund manages approximately $35 billion. As of Aug. 13, it held about 3 percent of shares in Hyundai Motor, 2.1 percent in Kia Motors and 2.6 percent in Hyundai Mobis, the carmaker’s affiliated auto parts maker.
Parts of the letter were disclosed by Bloomberg on Thursday, with the local media interpreting the information as a sign that Elliott was back in the game with Hyundai.
Meanwhile, share prices for Hyundai Motor fell 0.75 percent to 133,000 won, while Hyundai Glovis, a logistics arm, saw a 5.1 percent increase to 134,000 won at Friday’s closing.
Stock prices for Hyundai Mobis and Kia Motors rose 2.38 percent and 1.78 percent, respectively.
By Cho Chung-un (email@example.com)