– It will be divided into two companies:  foreign trade and resource development, and brand and food businesses

– The measure is designed to streamline operations and expand new business factors by specialized business sectors

 Hyundai Corporation, on June 27, announced that it would execute an equity spinoff by dividing its foreign trade and resource development and its brand and food businesses, which have heretofore had few mutual business relations. In so doing it will enhance the efficiency of operations and expand new business factors by specialized business sectors.

The existing company, Hyundai Corporation, will be in charge of foreign trade and resource development, while Hyundai C&F Inc., a tentatively named new entity, will be in charge of brand and food businesses.

The equity spinoff will assign shares of the newly established Hyundai C&F Inc. to the existing shareholders of Hyundai Corporation according to the split ratio, which is 59.24% (Hyundai Corporation), and 40.76% (Hyundai C&F), as calculated in consideration of the net asset value.

Hyundai Corporation plans to hold an extraordinary shareholders’ meeting for approval of the spinoff on August 28, in accordance with the decision of the Board of Directors. In late October, subsequent to the completion of the spinoff, Hyundai Corporation and Hyundai C&F will be listed, effectively changing the listing of the former and conducting the listing of the latter.

Based on the spinoff, Hyundai Corporation will be equipped with a more agile response system in this uncertain environment of rapidly changing international markets. The new entity will enhance the value of the brand business and proactively realize the diversification of the food business. For foreign trade and resource development, as operated by Hyundai Corporation, the business portfolio will be reorganized into a hybrid business model with focus on the optimization of profit. Accordingly, the corporation plans to maximize the business performance of the entire company by organizing a specialized operating system to suit each respective business sector.