Hyundai WIA to transfer special business division to Hyundai Rotem Company for 358.4 billion won

[Financial News] Hyundai WIA will transfer its special business division to its affiliate, Hyundai Rotem Company, to focus on its future mobility business.
The transfer is valued at 358.4 billion won. Hyundai WIA plans to use the deal to secure funding for investment in new businesses and restructure its business portfolio. Hyundai WIA disclosed on the 19th that it had decided to transfer the operations of its special business division to Hyundai Rotem Company. The transfer price is 358.386 billion won. The transfer includes the entire business, including operating assets and liabilities and employees to be transferred. However, real estate, including land and buildings belonging to the division, is excluded.
As of the end of last year, the business division to be transferred had assets of 354.9 billion won and revenue of 393.1 billion won. These represented 5.0% of Hyundai WIA’s total assets and 4.6% of its revenue.
Hyundai WIA said the purpose of the transfer was to restructure its business portfolio in order to focus on its future mobility business. It plans to use the funds raised through the deal to finance investment in new businesses.
The counterparty to the deal, Hyundai Rotem Company, is an affiliate of Hyundai WIA and is engaged in businesses including the manufacture of combat vehicles. Payment will be made in cash at the closing of the transaction.
Changes in net assets after the transfer reference date will be settled separately. The transfer reference date is scheduled for March 31, 2027, but may change depending on the fulfillment of contractual conditions precedent and approvals from relevant authorities, among other factors.
The transfer requires a special resolution at a shareholders’ meeting. Hyundai WIA plans to hold the meeting on November 27.
Opposing shareholders will be granted appraisal rights under applicable laws, and the proposed purchase price is 51,811 won per share. If the company reasonably expects the total amount payable for shares subject to appraisal rights to exceed 140 billion won, it may halt the business transfer and withdraw its decision by resolution of the board of directors.

[email protected] Kang Jung-mo Reporter