Hyundai Department Store "Humbly Accepts Shareholders' Meeting Results... Halts Transition to Holding Company System" (Update)

Special Resolution at General Meeting Rejected Due to Quorum Shortfall
No Plans to Reattempt Transition to Holding Company Structure

Hyundai Department Store Apgujeong Main Branch exterior view (Photo by Hyundai Department Store).

Hyundai Department Store announced on the 10th that it will halt its transition to a holding company system following the rejection of the proposed spin-off plan at the extraordinary general meeting of shareholders, stating that it "humbly accepts the result."

Hyundai Department Store stated, "On September 16th last year, the board of directors resolved to split the investment and business divisions to transition to a holding company system. However, the 'approval of the spin-off plan' was ultimately rejected at the extraordinary general meeting of shareholders held on this day."

Hyundai Department Store explained that it aimed to overcome the long-standing growth limitations of the department store business and ultimately enhance corporate and shareholder value through the spin-off and transition to a holding company system. Accordingly, along with restructuring the governance, it announced plans on the 31st of last month to implement shareholder return policies, including treasury stock cancellation and an expanded dividend policy after the split.

Hyundai Department Store said, "While many shareholders agreed with this plan and supported the spin-off, there were also critical opinions from some market participants and shareholders," adding, "As a result, the spin-off proposal failed to meet the special resolution quorum at the shareholders' meeting and was not passed."

Hyundai Department Store stated, "We humbly accept the results of this extraordinary general meeting and have decided to discontinue the transition to a holding company system through the spin-off process that had been pursued." They also apologized for the fact that the carefully considered spin-off plan and shareholder return policies, which were implemented with market concerns in mind, did not gain sufficient support from shareholders.

Meanwhile, Hyundai Green Food, which resolved the spin-off plan at its board meeting on September 16th last year, had the 'approval of the spin-off plan' finally passed at its extraordinary general meeting of shareholders held on this day. Hyundai Green Food will continue to pursue the transition to a holding company system through the spin-off.