Promotion of Articles of Incorporation Amendment Related to Group Listed Affiliates
Hyundai Department Store Group, which has transitioned to a single holding company system, is taking steps to improve the dividend procedures of its listed affiliates to eliminate so-called 'blind dividends.' The current method of 'setting the dividend record date first, then determining the dividend amount later' will be changed to 'determining the dividend amount first, then setting the dividend record date later.' This change will allow investors to confirm the dividend amount before deciding whether to invest, thereby increasing dividend predictability.
On the 20th, Hyundai Department Store Group announced that its 10 listed affiliates within the group?Hyundai GFS Holdings, Hyundai Department Store, Hyundai Home Shopping, Hyundai Green Food, Handsome, Hyundai Livart, Zinus, Hyundai Everdigm, Hyundai Easywell, and Daewon Kangup?plan to propose amendments to their articles of incorporation regarding the dividend record date at shareholder meetings held this month.
These 10 listed affiliates intend to revise the existing article, which states that "dividends shall be paid to shareholders or registered pledgees listed in the shareholder registry at the end of each settlement period," to "the board of directors may set a record date to determine shareholders entitled to receive dividends by resolution, and if a record date is set, it must be announced at least two weeks prior." This amendment aims to improve the dividend procedure so that investors can confirm the dividend amount in advance before making investment decisions.
A Hyundai Department Store Group official explained, "If the amendment regarding the dividend record date passes at the shareholder meetings, the 10 listed affiliates will finalize the dividend amount at the shareholder meetings in March next year and pay dividends to shareholders holding shares on the record date, which will be set around April." He added, "From the shareholders' perspective, being able to confirm the dividend amount before deciding whether to invest will enhance dividend predictability."
After transitioning to a single holding company system last year, Hyundai Department Store Group recently announced mid- to long-term dividend policies for each affiliate reflecting its commitment to improving shareholder returns. The group is also conducting treasury stock cancellations, a representative shareholder return measure. Zinus plans to cancel about 2.3% of its issued shares by April, and Hyundai Green Food plans to newly purchase and cancel 10.6% of its treasury stock by 2028. Previously, Hyundai GFS Holdings and Handsome canceled approximately 4% and 5% of their issued shares, respectively.
In addition to establishing mid- to long-term dividend policies and canceling treasury stock, Hyundai Department Store Group plans to strengthen communication with the market. Last year, it held an integrated investor relations (IR) session involving all listed affiliates within the group, and it plans to conduct another integrated IR session in the first half of this year.
A representative of Hyundai GFS Holdings, the holding company of Hyundai Department Store Group, stated, "We plan to continue gathering diverse market opinions to establish and implement more progressive shareholder-friendly policies. With the new governance structure centered on a single holding company in place, the group will strive to enhance the corporate value of its subsidiaries and increase shareholder value at the group level."
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