INTERNATIONAL - Hyundai Mobis Co Ltd, under pressure from activist investor Elliott Management Corp to address its excess capital and governance structure, announced a smaller-than-sought 2.6 trillion won ($2.3 billion) shareholder return package.
The de facto holding company of South Korea’s top automaker Hyundai Motor rejected a 2.5 trillion won dividend demanded by Elliott and also new board members it recommended, a source familiar with the matter said.
The new package is smaller than Elliott’s demand for at least 4 trillion won of shareholder returns.
The rejections mean a restructuring of Hyundai Motor Group remains uncertain. Vice-chairman Euisun Chung pledged in January to complete a restructuring of South Korea’s second-biggest conglomerate, which is widely expected to pave the way for him to formally succeed his octogenarian father as head of the group.
A previous attempt to overhaul the conglomerate’s ownership structure was shelved due to opposition from the US fund.