Hyundai Heavy affiliate sells stake in parent firm's spin-off unit

SEOUL, June 21 (Yonhap) -- Hyundai Mipo Dockyard Co., an affiliate of shipbuilding conglomerate Hyundai Heavy Industries Co., sold its stakes in the affiliate recently spun off from its parent firm, a move seen to accelerate the conglomerate's drive for a holding company structure.

In March, shareholders of Hyundai Heavy approved the company's plan to hive off its noncore businesses, aimed at what it claims will boost each business unit's competitiveness.

Under the plan, the shipyard split into four independent entities: shipbuilding, electronics, construction equipment and robotics.

In a regulatory filing, Hyundai Mipo said it unloaded a 7.98-percent stake in Hyundai Robotics Co. for 376 billion won (US$329 million). Hyundai Robotics is at the top of Hyundai Heavy's proposed holding company structure. The stake sale is aimed at cutting off a stock crossholding structure between Hyundai Heavy and its many affiliates.

Under the current regulations, Hyundai Mipo is required to sell off its entire stake in Hyundai Robotics by September this year.

Last week, Hyundai Robotics said it would sell 1.71 trillion won worth of stocks to finance the purchase of stakes in Hyundai Heavy, Hyundai Electronics & Energy Systems Co. and Hyundai Construction Equipment Co.

Should things go as planned, Hyundai Robotics would come to have a 27.8-percent stake in Hyundai Heavy, sharply up from its current holding of 13.4 percent.

sam@yna.co.kr
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