Hyundai stocks rise on $228m share buyback plan
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INTERNATIONAL – Hyundai said on Friday it would buy back 255 billion won ($228.3 million) worth of common and preferred stocks to stabilize its stock prices and boost investor returns, sending shares of the South Korean automaker up 4 percent.
Hyundai Motor stocks have plunged more than 30 percent this year and US hedge fund Elliott earlier this month renewed pressure on the automaker to return its “excess capital” to shareholders.
In May, Hyundai Motor Group, backed by founding family members, shelved an ownership restructuring plan that would have given the son of its aging chairman more control of the conglomerate, following opposition from Elliott.
Hyundai said in a regulatory filing it would buy back common stocks worth 214 billion won and preferred stocks worth 41 billion won. The buyback is expected to start on Dec. 3 this year and end on Feb. 28, 2019.
Shares of Hyundai Motor affiliates also gained ground, with Kia Motors up 2.4 percent and Hyundai gaining 1.7 percent.