Hyundai Motor Company chairman Chung Mong-Koo has recently boosted his stake in the car maker to 4.4% from 4.08% by purchasing an additional 700,000 shares held by Mitsubishi Corporation, according to a recent filing to the Financial Supervisory Service cited by Dow Jones Newswires.
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A Hyundai spokesman told the news agency Chung’s recent purchase stems from Mitsubishi’s intent to sell the shares and isn’t related to an effort by Chung to protect the company from DaimlerChrysler boosting its ownership in Hyundai Motor.
Dow Jones noted that DaimlerChrysler currently has a 10.5% stake in the car maker and can boost its stake up to 15% under the terms of the companies’ alliance agreement signed June on 2000. That option can be exercised from October, the Hyundai spokesman reportedly said.
Despite Hyundai’s denial, analysts told Dow Jones the recent stake purchase by Chung is an effort to solidify his control of the company’s management.
“Chung’s recent stake purchase is tied to the possibility that DaimlerChrysler may boost its stake in the company further,” an auto analyst at a foreign brokerage firm reportedly said.
According to Dow Jones, other Hyundai Motor shareholders include automotive parts maker Hyundai Mobis Co., Capital Group Cos. Inc. and INI Steel Co.
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By GlobalDataMitsubishi’s stake in Hyundai falls to 2.5% from 2.8%, Dow Jones added.
