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

Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 2017
Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
As soon as Toyota trademarked the names “LC F” and “Lexus LC F” at the European Union Intellectual Property Office, speculations have emerged that there could actually be a hardcore...
by - December 14, 2017
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