Hyundai Futurenet will promote synergy among its IT divisions and expand new businesses this year. It stated that rumors about a merger with Hyundai Home Shopping and a delisting are not true.
Hyundai Futurenet announced that it held its 33rd regular shareholders' meeting at SCC Hall in Seocho-gu, Seoul, on the 20th.
Vice President Kim Sung-il noted, "As global economic contraction and uncertainty have expanded, and with major corporations continuing to implement austerity management, our management environment has also become challenging. To lay the groundwork for performance improvement and growth, we utilized reserved funds from last year to acquire a parking lot in Daegu, securing a stable and fixed revenue source, and merged with Hyundai IT&E to create business synergies with existing institutional sectors and strengthen IT expertise."
This year, the focus will be on expanding synergies with the IT institutional sector acquired last year, while pushing for the expansion of various new businesses based on excellent IT capabilities and specialized personnel. The goal is to enhance growth and revenue by integrating specialized IT capabilities into existing institutional sectors.
In addition, it stated its position regarding issues raised recently in some market circles.
Vice President Kim said, "Most of the cash on hand will be used as funds for investment and new mergers and acquisitions (M&A) to discover new growth engines," adding that, "We are facing an urgent task of devising key businesses that can drive the company's future growth, based on the funds secured from the sale of our primary focus, the cable broadcasting institutional sector, back in 2021."
He continued, "The cash we hold will be used not only to strengthen our current businesses in digital media and IT services but also for entering new growth-driving sectors. We intend to pursue meaningful M&A targeting promising sectors and quality corporations, based on a premise of 100% equity ownership, in a timely manner."
He emphasized, "There are no plans or ongoing efforts for share purchases or stock acquisitions aimed at a merger or delisting with Hyundai Home Shopping, as raised by some shareholders and the media," stating that, "The largest shareholder, Hyundai Home Shopping, has repeatedly stated through the media that it is not planning any public offers or mergers with us."
Hyundai Futurenet is expected to announce its corporate value enhancement plan (value-up) in the first half of this year. The plan, which contains specific directions for its growth strategy, will also include measures to enhance shareholder value, such as a reinforced long-term dividend policy. Through this, it aims to present a vision for long-term corporate value growth to the market.