Hyundai to keep N. Korea business

Hyundai to keep N. Korea business

SEOUL: Hyundai Group boss Hyun Jung-Eun vowed Wednesday to
fight a challenge to her control of the group and to push ahead
with loss-making business ventures in North Korea.

A family feud pits Hyun against Chung Sang-Yung, the uncle of
her late husband, in a battle for control of the business empire
that has spearheaded South Korean business projects in North
Korea.

In response to Chung's recent acquisition of a controlling
stake in the group, Hyun said she planned a massive rights issue
to convert its holding firm, Hyundai Elevator, into a public
corporation.

On Wednesday, Hyundai Elevator's board approved the plan to
offer 10 million new shares next month in a public offering.

The board also set the offer price at 40,900 won (US$34.7) per
share and agreed on a bonus issue of 4.34 million shares, with
0.28 new share to be offered to shareholders for every one share
held.

Six million new shares will be sold to high-yield funds and
the rest to retail investors, Hyun said, adding the bonus issue
would help minority shareholders make up for losses.

Hyun said she would now sell unsubscribed new shares to a
third party.--AFP