Hyundai Mobis Gains More Than 5% on KRW 600 Billion Sale of Lamp Business [Stock NOW]

[Financial News] Hyundai Mobis is rising in early trading on news that it will sell its automotive lamp business for KRW 600 billion.
As of 9:10 a.m. on the 1st, Hyundai Mobis was trading at KRW 388,500, up KRW 21,500, or 5.86%, from the previous trading day. The stock opened at KRW 380,000 and rose as high as KRW 394,500 during the session.
Investor sentiment appears to have been boosted by Hyundai Mobis' announcement the previous day that it had signed a definitive agreement with French auto parts maker OPmobility to sell its lamp business. The sale is valued at KRW 600 billion.
Hyundai Mobis held a temporary board meeting and approved a proposal to spin off its lamp business into a separate company. The scheduled spin-off date is April 1 next year, and the company plans to transfer its entire 100% stake in the newly established entity to OPmobility after the spin-off. Hyundai Mobis aims to complete the transaction in the second half of next year, subject to a corporate merger review and approvals from the relevant authorities.
The lamp business being sold operates five production plants in total across Korea, China, Mexico and the Czech Republic. According to OPmobility, its sales, including overseas operations, totaled approximately KRW 2.5 trillion last year.
Through the sale, Hyundai Mobis plans to strengthen the lamp business's expertise and global competitiveness while concentrating management resources on new growth engines and core businesses.

[email protected] Lee Jeong-hwa Reporter