Hyundai Mobis to spend $2.3 billion on shareholder returns, name heir apparent as new CEO

Hyundai Mobis to spend $2.3 billion on shareholder returns, name heir apparent as new CEO
Hyundai Mobis to spend $2.3 billion on shareholder returns, name heir apparent as new CEO

Hyundai Mobis Co Ltd, an auto parts affiliate of Hyundai Motor Co, on Tuesday announced a plan to offer shareholder returns worth 2.6 trillion won ($2.32 billion or £1.8 billion) over the next three years and to appoint group heir apparent Euisun Chung as chief executive.

The plan comes after Chung early in January pledged to complete a restructuring of South Korea’s second-biggest conglomerate, which is widely expected to pave the way for him to formally succeed his octogenarian father as head of the group.

Last year, the group’s plan to overhaul its ownership structure was shelved following opposition from U.S. hedge fund Elliott Management Corp.

The plan by Hyundai Mobis includes dividends worth 1.1 trillion won, a buyback of stocks worth 1 trillion won and a cancellation of 460 billion won worth of shares.

The parts supplier also said it will appoint Opel former Chief Executive Karl-Thomas Neumann as an outside board director.

Reporting by Hyunjoo Jin; Editing by Christopher Cushing