Hyundai Mobis announced plans to buy back KRW221bn (US$189m) worth of shares in the fourth quarter of 2020 to increase shareholder value, according to local reports.
In a regulatory filing, South Korea's largest auto parts manufacturer revealed plans to buy back 983,000 shares between 5 and 28 December which is expected to help underpin the company's share price as well as improving shareholder value.
A total of KRW62.5bn worth of shares will be cancelled while the remainder will be held by the company for more than six months to prop up the share price which had recovered to KRW229,000 by late September from a March low of KRW129,000.
The company reported a 12.3% sales decline to KRW15.96trn in the first half of 2020 from KRW18.20trn in the same period of last year, reflecting mainly a 25% decline in Hyundai Motor global sales to 1,589,429 vehicles in this period and a 14% drop at Kia Motors to 1,161,246 units.
Hyundai Mobis' first half net earnings fell by over 48% to KRW582.6bn.