Hyundai Mobis increases stake in Hyundai Motor to 20.78 pct

SEOUL, Aug. 28 (Yonhap) -- Hyundai Mobis Co., South Korea's largest auto-parts
maker, said Friday it bought a 5.83 percent stake in its parent Hyundai Motor
Co., as part of efforts to become a holding company in the automobile
conglomerate.

Hyundai Mobis purchased about 12.85 million shares of Hyundai Motor from Hyundai
Steel Co., a steel-making unit of the Hyundai-Kia automotive group, for 1.33
trillion won (US$1.06 billion), the auto-parts maker said in a statement.
The transaction raised Hyundai Mobis' stake in Hyundai Motor to 20.78 percent
from 14.95 percent.
"The stock purchase is aimed at easing a cross-shareholding structure and
improving corporate governance," said an official at Hyundai Mobis.
With the purchase, Hyundai Mobis is eligible to become a holding company under
South Korean law.
Hyundai Motor and Kia Motors form the world's sixth-largest automaker.
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