[THE INVESTOR] GE Capital will decide on the sale of its stake in Hyundai Capital Services within July, industry sources said on July 8.
GE Capital currently holds 20 percent of
Hyundai Motor Group’s financing arm. The US firm plans to unload the shares, and with no buyer appearing, GE Capital had planned to exercise the put option and resell to Hyundai Motor Group.
Based on the most recent transaction regarding Hyundai Capital Services’ shares, its stake is likely to cost around 700 billion won (US$ 604 million).
According to Hyundai Motor Group, however, GE Capital is reviewing its plans and is likely to reach a decision within the month.
Both GE Capital and Hyundai Motor Group reportedly want a third party to acquire the shares, but market watchers say that the shares are likely to end up in the South Korean conglomerate’s hands.
In addition to the hefty cost, reselling the shares will be difficult as the company is unlisted.
In 2004, GE Capital acquired 43 percent of Hyundai Capital Services for 620 billion won. With the company deciding to unload financial assets unrelated to GE’s main business, the US firm resold 20.1 percent and 3.2 percent to Hyundai Motor and Kia Motors, respectively, in December for about 700 billion won. Hyundai Motor Group companies now hold 79.8 percent of Hyundai Capital Services.
By Choi He-suk (
cheesuk@heraldcorp.com)
