Hyundai Mobis shareholders OK merger with Hyundai Autonet

SEOUL, May 22 (Yonhap) -- Shareholders of Hyundai Mobis Co., South Korea's largest auto-parts maker, approved a merger with the company's affiliate Hyundai Autonet Co. on Friday that will help Hyundai Mobis expand its electronic components business.

Shareholders of Hyundai Autonet also approved the plan. Hyundai Autonet, which
makes audio visual equipment for cars, will be merged into Hyundai Mobis on June
25.
Hyundai Mobis said the merger will help it reduce annual costs by up to 600
billion won (US$484 million) by 2015 by expanding its product lineup.
Shareholders of Hyundai Mobis opposed to the deal can sell their shares at 79,190
won per common stock and 41,788 won per preferred stock, while Autonet shares
will go for 3,325 won apiece, according to the two companies.
Shares of Hyundai Mobis were trading at 113,500 won on the Seoul bourse as of
11:22 a.m. Those of Hyundai Autonet were changing hands at 4,725 won.
In January, Hyundai Mobis scrapped the takeover plan citing the excessive costs
of buying stock from opposing shareholders, estimated at 2.88 trillion won. The
two companies resumed their merger plan in March.
They said in October that the deal would be terminated if costs exceeded 300
billion won.
Hyundai Mobis, an affiliate of Hyundai Motor Co., earns most of its revenues from
sales of parts to Hyundai Motor and its affiliate Kia Motors Corp.