[Edaily Reporter SHIN MIN JOON ] HYUNDAI G.F. HOLDINGS(005440) Subsidiary HYUNDAI HOME SHOPPING NETWORK CORPORATION will carry out a spin-off of its investment and home shopping business divisions. The newly established investment company following the spin-off will be merged into the parent company, HYUNDAI G.F. HOLDINGS. The surviving entity will continue to operate the home shopping business division, excluding the investment business division.
HYUNDAI HOME SHOPPING NETWORK CORPORATION announced on the 5th that it will carry out a spin-off of its investment division—which manages investment stocks such as its stake in HandsomeCorporation—to establish a new holding company, HYUNDAI HOME SHOPPING NETWORK CORPORATION (tentative name). The split ratio is set at 0.2736149 for the surviving company and 0.7263851 for the newly established company. The effective date of the spin-off has been set for December 15.
A shareholders’ meeting to approve the spin-off plan is scheduled for November 12. The new company will launch as an unlisted entity and will not be relisted.
HYUNDAI G.F. HOLDINGS stated, “Through this spin-off, the surviving company will no longer hold the status of an intermediate holding company, allowing it to concentrate its human, material, and information resources on its core home shopping business,” adding, “Based on this, we expect to enhance our business competitiveness by focusing on the home shopping business.”
They further explained, “Following the spin-off, the newly established company will merge with its parent company, HYUNDAI G.F. HOLDINGS, thereby efficiently unifying its decision-making structure as an investment company.”
They further explained, “The subsidiaries of the existing HYUNDAI HOME SHOPPING NETWORK CORPORATION will be subject to the conduct restrictions applicable to subsidiaries of a holding company, rather than those applicable to grand subsidiaries,” and added, “Consequently, we expect the conduct restrictions on holding companies under the Fair Trade Act to be relaxed, making it easier to explore new business opportunities.”
