Hyundai Elevator said Friday that it will sell 6.5 million shares (a 5.8% stake) of Hyundai Movex.
The sale price per share is 17,810 won, bringing the total transaction value to approximately 116 billion won. Hyundai Elevator's stake in Hyundai Movex will decrease from the previous 48.89% to 43.04%. The company is reported to plan to primarily use the sale proceeds for shareholder return.
The sale will be conducted via a block trade (off-exchange bulk trading) rather than through market transactions, aiming to reduce the burden on general shareholders by mitigating concerns over stock price declines.
In particular, PRS (Price Return Swap) options based on the shares being sold were applied. PRS is generally one of the transaction methods chosen by many companies when a rise in stock prices is expected.
Hyundai Elevator simultaneously disclosed plans to cancel 170 billion won worth of treasury stock. To improve corporate valuation and enhance shareholder value, the company decided to cancel 2,487,323 shares, which account for 6.36% of its total issued shares. The scheduled cancellation date is the 30th.
The 500,000 treasury shares excluded from the cancellation will be used as a resource for employee compensation. A portion of these will be distributed to 2,671 employees, excluding executives, in accordance with this year's wage agreement. The remainder is planned to be used for operating RSUs (Restricted Stock Units) and other purposes to promote long-term motivation among members.
An industry insider said, "From Hyundai Elevator's perspective, it can expect not only stock price support but also tax benefits resulting from the separate taxation of dividend income for high-dividend companies."
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