Hyundai Mobis scraps plan to merge with Hyundai Autonet

SEOUL, Jan. 7 (Yonhap) -- Hyundai Mobis Co., the auto parts affiliate of Hyundai
Motor Co., said Wednesday it has scrapped a plan to merge with its subsidiary
Hyundai Autonet Co., citing a higher cost for the merger.

In order to expand its product lineup, Mobis wants to merge with Autonet, which
makes audio visual equipment for cars, for about 690 billion won (US$534
million).
However, shareholders of both Mobis and Autonet opposing the merger exercised
their rights to call for Mobis to repurchase their stocks for 2.88 trillion won,
the company said in a statement.
"As a significant number of shareholders applied their put-back options for
profit-taking as stock prices plunged, there was an excessive financial burden
for the merger," Mobis said in a statement.
Mobis said it decided to scrap the merger to avoid the excessive burden.
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