Hyundai Department Store Holding Company to Publicly Buy 25% Stake in Hyundai Home Shopping... "Completing Holding Company Structure"

Hyundai GFE Holdings to Publicly Buy 3 Million Shares of Hyundai Home Shopping
Purpose to Meet Holding Company Requirements... Aiming to Secure 50% Stake
KRW 64,200 per Share... Purchase Until the 22nd
"Not Delisting Hyundai Home... No Price Increase Even if Target Quantity Not Met"

Hyundai G.F. Holdings, the holding company of Hyundai Department Store Group, will conduct a tender offer for shares of its affiliate Hyundai Home Shopping to meet the holding company requirements.

Hyundai G.F. Holdings announced on the 3rd that it will conduct a tender offer for 3 million shares of its affiliate Hyundai Home Shopping (25% of the total issued shares) to fulfill the holding company requirements. The offer price is 64,200 KRW per share, and the tender offer period is from today until the 22nd. The offer price is about 20% higher than the closing price of 53,500 KRW on the previous day, the 2nd.

Hyundai Department Store Group CI. [Image provided by Hyundai Department Store]

The purpose of this tender offer, as stated in Hyundai G.F. Holdings’ tender offer prospectus, is to stabilize management control and meet the holding company requirements. If the tender offer proceeds as planned, Hyundai G.F. Holdings’ stake in Hyundai Home Shopping will increase from the current 25% to 50% (6,001,500 shares). In this case, it will satisfy the holding company’s restriction requirement of owning at least 30% of the listed company’s shares.

Hyundai G.F. Holdings explained, "We decided to conduct the tender offer to secure additional shares of Hyundai Home Shopping, which serves as an intermediate holding company within the group, and incorporate it as a subsidiary to enhance the competitiveness and value of the holding company." They added, "The incorporation of Hyundai Home Shopping, a high-quality affiliate, will also help improve the profit structure through consolidated accounting effects."

Hyundai G.F. Holdings stated that the tender offer method was chosen to provide all shareholders with an equal opportunity. A company official said, "The tender offer price was calculated by considering an appropriate premium on the weighted arithmetic average stock price over the past three months, as used by several companies that have conducted tender offers in the past." The official also explained, "The scale of the tender offer was comprehensively considered based on Hyundai G.F. Holdings’ financial capacity, tax benefits from dividend income, and securing control over the core affiliate."

The official further added, "Even if the subscription rate for the tender offer falls short of the target quantity, we do not plan any additional tender offers or price increases, nor do we have any plans to delist Hyundai Home Shopping after the tender offer." They elaborated, "If the total number of shares tendered is less than the planned purchase quantity, all tendered shares will be purchased regardless of the subscription rate, and if it exceeds, shares will be purchased on a pro-rata basis."

Meanwhile, following the news of Hyundai Home Shopping’s tender offer, its stock price has shown a significant rise. As of 9:20 a.m. today, Hyundai Home Shopping is trading at 60,000 KRW, up 12.15% (6,500 KRW) compared to the previous trading day.