Hyundai group investors cry foul over $10 billion bid for Seoul land

Article by Christian A., on September 24, 2014

Around $8 billion in shareholder value were sent to oblivion at Hyundai Motor Co. and two affiliates, after the companies failed to seek board clearance for a $10-billion bid for a plot of land in Seoul’s high-end Gangnam district. Aside from falling shares at Hyundai Motor, Kia Motors and Hyundai Mobis, investors expressed disgust in the move as the bid was around three times the land’s appraised value.

According to an official with Korea Electric Power, owner of the land, Hyundai Motor Group won the sealed auction by "a wide margin." Fellow bidder Samsung Electronics reportedly placed a bid between $4 billion and $5 billion.

While boards of the three companies discussed and approved bidding for the KEPCO land, the bid price was not shared with directors since it was considered as confidential, three of the directors disclosed.

The Hyundai Motor and Kia Motors boards unanimously green-lighted a bid for the land. One of the directors said that the intangible benefits from acquiring the land “go beyond the appraisal price.”

Another director at one of the firms said its board heard and discussed information about the land’s appraisal price as well as the value of nearby buildings. The companies were planning to buy the land to house a headquarters complex, hotel and automotive theme park. “Hyundai has many grand ideas around the KEPCO land," the director remarked to Automotive News.

If you liked the article, share on:

Topics: hyundai

Comments

Recommended

The 2018 Consumer Electric Show is full of exciting new technology for everyone, including the automotive industry. One of the most anticipated is the unveiling of the Linux-based MBUX that...
by - January 22, 2018
With all the photos Mercedes-Benz has been posting of the new 2019 G-Class, not one of those featured the SUV in a light exterior finish, as they were all in...
by - January 22, 2018
When you first glance at the Rhino GX SUV, the first thing that will come to mind is that the vehicle probably has a military style cabin, with thinly padded...
by - January 22, 2018
The Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries