Hyundai Department Store Group is accelerating its efforts to enhance corporate value. As part of this initiative, Hyundai G.F Holdings, the holding company of Hyundai Department Store Group, and Hyundai Home Shopping are purchasing stakes in profitable subsidiaries to strengthen responsible management as major shareholders. Additionally, Hyundai Home Shopping plans to buy back its own shares to enhance shareholder value.
According to the Financial Supervisory Service's electronic disclosure system on the 24th, Hyundai G.F Holdings, the holding company of Hyundai Department Store Group, plans to purchase 1.8% (about 400,000 shares) of equity in its core subsidiary, Hyundai Department Store, on the market. This will increase Hyundai G.F Holdings' equity stake in Hyundai Department Store from the existing 31.5% to 33.3%.
On the same day, Hyundai Home Shopping plans to buy 1.5% (about 330,000 shares) of equity in Handsome from the market. Hyundai Home Shopping's equity holding in Handsome will expand from the existing 39% to 40.5%. Additionally, Hyundai Home Shopping intends to repurchase 2% (about 240,000 shares) of its own shares to enhance shareholder value.
A representative of Hyundai Department Store Group noted, "This equity acquisition is being pursued to enhance corporate value by expanding stakes in undervalued subsidiaries and strengthening responsible management as a major shareholder," adding, "However, actual equity transactions are scheduled to occur starting from the 24th of next month, one month after complying with advance disclosure regulations.
Previously, in the last year, Hyundai G.F Holdings announced it would increase its control over profitable subsidiaries through its value-up plan to expand dividend income. However, the decision to expand equity stakes and repurchase shares disclosed on this day is seen by Hyundai Department Store Group as an additional measure separate from the value-up plan announced last year.
In this regard, a representative of Hyundai Department Store Group stated, "We determined that the department store, home shopping, and Handsome are excessively undervalued compared to their actual value in terms of market position, brand competitiveness, and future growth potential," adding, "If we deem that profitable subsidiaries do not meet their appropriate value, we plan to implement various additional value-up policies going forward.