HHI sells off 9.89% share of Hyundai Asan

The board of directors of Hyundai Heavy Industries (HHI) decided to sell its 9.89% stake in Hyundai Asan (8.9 million stocks) to Hyundai Asan, including 5% of the Hyundai Mipo Shipyard from its 24.84% stake, said the company Feb 20.

The sell-off satisfied the less-than-15% group shareholder requirement and will allow HHI to separate from the Hyundai Group. HHI will submit a separation proposal to the Korea Fair Trade Commission (KFTC) in the middle of next week.

An enterprise hoping to separate from its mother group has to lower its share position to under 3% for listed companies and under 15% for un-listed companies.

HHI’s official separation from the Hyundai Group should be completed no later than the end of this February or early March.

Though HHI pushed for separation from its mother group, it missed its target separation date of December 2001 due to scheduling changes in selling off its shares in Hyundai Asan, which reduced its capital.