Mitsubishi Sells Its Hyundai Motor Stake To Hyundai Mobis

TOKYO, November 1, 2002; Dow Jones reported that Mitsubishi Motors Corp. said Friday it will sell its 1.71% stake, or about 3.75 million shares, in Hyundai Motor Co. of South Korea to Hyundai Mobis Co. for about Y14 billion.

The sale comes as part of an agreement between the three, under which they will work on joint projects to develop automotive technology and products, the Japanese automaker said. The agreement supersedes the existing ties between Mitsubishi Motors and Hyundai Motor based on an agreement reached back in 1982, it added.

Mitsubishi Motors said it expects to record a profit of about Y9 billion from the sale, but kept unchanged its earnings forecasts for the year through March.

The sale will be carried out between November 1, 2002 and March 15, 2003, and the target price is 36,750 won (US$1=KRW1222.3) per Hyundai Motor share, Mitsubishi Motors said. Hyundai Mobis is an auto parts maker for the Hyundai group.

Earlier this year, Mitsubishi Motors, Hyundai Motor and DaimlerChrysler AG ( DCX) formed a global alliance for the development of a new state-of-the-art four cylinder gasoline engine.

In addition, Mitsubishi Motors said it and Hyundai Motor envision further strengthening cooperation in areas such as engines, transmissions and basic automotive design technology.

With Hyundai Mobis on board, future joint projects may include the design, development, production, procurement and sourcing of auto parts, not only in South Korea and Japan but other global regions, Mitsubishi Motors said.

Specific projects will be launched on a case-by-case basis, it said.