South Korean auto giant Hyundai Motor Group said it will spin off parts of Hyundai Mobis Co. Ltd. and merge them with logistics group Hyundai Glovis Co. Ltd. in an effort to streamline its governance structure, Yonhap News Agency reported, citing a company statement.
Hyundai Mobis' module manufacturing and after-sales parts segments will be spun off and merged with Hyundai Glovis. Hyundai Mobis shareholders will receive 61 new Glovis shares for every 100 Mobis shares upon shareholder approval, the report said.
Hyundai Mobis and Hyundai Glovis shareholders are scheduled to meet May 29.
Hyundai Motor also said it will strengthen its core auto parts operations and research-and-development business, as well as expand into the autonomous vehicles market.
In addition, large shareholders of Hyundai Motor will acquire all Hyundai Mobis shares held by affiliates Kia Motors Corp., Hyundai Glovis and Hyundai Steel Company "to simplify the group's governance structure," a company spokesman was quoted as saying in the report.
Kia, Hyundai Glovis and Hyundai Steel hold 16.9%, 0.7% and 5.7% stakes, respectively, in Hyundai Mobis, the report said.