S Korea Hyundai Mobis To Buy Back,Cancel 1% Of Its Shares

SEOUL March 15, 2003; Dow Jones reported that South Korea's Hyundai Mobis Co. will buy back and cancel 850,000 shares between March 19 and June 18, the company said in a Saturday disclosure to the Financial Supervisory Service.

The 850,000 shares represent 1% of the company's outstanding shares. The car parts maker, which is an affiliate of Hyundai Motor Co. said it will buy back the shares at a price of 19,200 won ($1=KRW1,241.2) apiece. The company didn't give a reason for the share buyback.

Separately, Hyundai Mobis said it will buy 100% of Japan's Mitsubishi Motors Corp. stake in Hyundai Motor by March 24.

After purchasing the 3.75 million Hyundai Motor shares worth KRW138 billion, Hyundai Mobis' stake in the country's largest automaker will rise to 13.21%, Hyundai Mobis said in the disclosure.

Hyundai Mobis had originally planned to buy 70% of the Hyundai Motor shares and let another company buy the remaining 30%, according to the disclosure.

By increasing its stake in Hyundai Motors, Hyundai Mobis will be able to better strengthen its position in the car parts manufacturing industry, Hyundai Mobis said in the disclosure.

Both the share buyback and the Hyundai Motor share purchase decisions were made at a board of directors meeting Saturday.