Hyundai Heavy Industries Group finally completed the transition to a holding company structure.
Hyundai Samho Heavy Industries held a board meeting on August 22nd and passed a proposal to divide Hyundai Samho Heavy Industries into an investment and operational business entity.
On the same day, Hyundai Heavy Industries also decided to incorporate Hyundai Samho’s investment company into its business.
According to this decision, Hyundai Mipo Dockyard, which was a major company of Hyundai Heavy Industries Holdings, will be directly placed under Hyundai Heavy.
As for Hyundai Heavy Industries Group, it solved the stakeholder stake issue, which is one of the requirements of the holding company’s restraining act.
Under the current Fair Trade Act, the company below the holding companies are required to sell all of their shares unless they own 100% of the company.
This was meaningful in that Hyundai Heavy Industries has removed the shareholding and circulation of shares of its last hurdle in its transition to a holding company.
Hyundai Heavy Industries, which has completed the reorganization of its structure, has announced plans to increase its business competitiveness.
Hyundai Heavy Industries Group is expected to complete the split-off merger by December of this year after submitting a securities report and taking necessary procedures such as general shareholders’ meeting this month.
Meanwhile, Hyundai Heavy Industries and Hyundai Mipo Dockyard also held their respective board meeting and passed a plan to eliminate cyclical investment, a condition of switching to another holding company.
As a result, business officials stated that Hyundai Heavy Industries Group has completely eliminated the circulation link from Hyundai Heavy Industries Hyundai Samho Heavy Industries Hyundai Mipo Dockyard and Hyundai Heavy Industries.
A representative official of Hyundai Heavy Industries said, “We will reshuffle the uncertainties remaining in the transition process of the holding company system. The holding company has secured more than 30% stake in major subsidiaries and has completed a stable holding company structure.”
Hyundai Heavy Industries and Hyundai Oilbank will be the main divisions that Hyundai Heavy Industries Group will strengthen in order to increase its business competitiveness in the future.
On the other hand, the role of the vice-president of Hyundai Heavy Industries, Jung Ki-seon, who is in the process of taking over management succession, is expected to expand.