In the wake of corruption scandal revolving around the Samsung Group Hyundai Mobis has come under investor and government pressure; investors have also criticised the conglomerate of stripping Mobis of valuable assets and favoring the controlling Chung family at the expense of shareholders.
As per two sources familiar with the matter at hand, Hyundai Mobis is likely to meet Elliott Management next week.
The meeting comes in the wake of Elliott launching a campaign to pressure Hyundai Motor Group to improve its governance and boost investor returns.
The meeting is likely to take place in Europe as part of Hyundai Mobis’ investor conference, which is sponsored by Citi, said a source.
A spokesman for Hyundai Mobis declined to comment.
Last week, the auto-to-steel conglomerate announced a plan to streamline its complex ownership structure in response to investors calls as well as calls from the government to boost governance and bring about more transparency in the company.
On Wednesday, Elliott Management revealed its share holding which is worth more than $1 billion in its three Group affiliates, which includes shares in Hyundai Mobis which would become Hyundai’s de facto holding company under the restructuring plan.
Hyundai Mobis restructuring plan will require approval from two-thirds of shares that are voted, has been criticized by some investors for stripping Mobis of valuable assets and favoring the controlling Chung family at the expense of shareholders.
The plan has raised questions revolving around synergies arising from the deal.
Although shareholder activism is a rarity in South Korea, the chaebols have come under mounting pressure to reform following a corruption scandal in the Samsung Group which led to the ouster of former South Korean President Park Geun-hye.
NH Investment & Securities, a South Korean brokerage, is advising Hyundai on the reorganization plan.