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