[SEOUL] Hyundai Motor Co on Tuesday said its chairman and vice chairman failed to sell about US$1.25 billion (S$1.67 billion) worth of shares in affiliate Hyundai Glovis through a block deal, seen as part of the family-owned conglomerate's succession plan.
The sale collapsed due to its large size and as "some conditions were not met," the South Korean automaker said in a statement, adding that it had no current plan to resume the block deal.
Hyundai Motor chairman Chung Mong Koo and vice-chairman Chung Eui Sun had sought to sell 5.02 million shares at 264,000 won to 277,500 won each, a discount of up to 12 per cent to their last closing price of 300,000 won, bringing their total stake to below 30 per cent.
The sale would have freed logistics firm Hyundai Glovis from antitrust regulations regarding inter-affiliate transactions, while helping Eui-sun buy stakes in key units such as Hyundai Mobis Co Ltd, analysts said.
Although Hyundai Motor Group Chairman Chung Mong Koo, 76, has given no signal that he plans to step down soon, he is expected to eventually hand over the reins to Eui Sun, 44, his only son.