Following the simplification of the governance structure through the comprehensive share exchange, Hyundai Home Shopping is reviewing a potential spin-off into an operating company and an investment company. If such a spin-off is implemented, the investment company is expected to be integrated into Hyundai G.F. Holdings.
※ The foregoing is subject to change based on future resolutions of the Board of Directors following the completion of the comprehensive share exchange.
Through this process, the operating company will be able to concentrate its human, physical, and informational resources on its core home shopping business, which is expected to enhance overall business competitiveness. In addition, the company is expected to be better positioned to pursue new businesses closely related to its core operations and to respond more flexibly to related investment opportunities. Improvements in business performance may lead to a market re-evaluation of the intrinsic value of Hyundai Home Shopping, and as the value of Hyundai Home Shopping increases as a wholly owned subsidiary, the corporate value of Hyundai G.F. Holdings, which holds whole shares, is also expected to increase, forming a virtuous cycle.
Meanwhile, key investment and management decisions regarding subsidiaries will be carried out consistently by Hyundai G.F. Holdings, enabling a more efficient structure for group-level investment decision-making and subsidiary management.
In addition, as the duplicate listing structure involving major subsidiaries and sub-subsidiaries(including Handsome, Hyundai Futurenet, Hyundai Bioland etc) is partially resolved and simplified, the holding company discount that has historically been applied is expected to be mitigated, thereby enhancing the potential for a market re-rating of corporate value.
Furthermore, as a holding company-centered subsidiary management framework is more clearly established, the transaction is expected to serve as an opportunity to transition the group’s governance structure toward a more transparent and efficient system.
Following the simplification of the governance structure through the comprehensive share exchange, Hyundai Home Shopping is reviewing a potential spin-off into an operating company and an investment company. If such a spin-off is implemented, the investment company is expected to be integrated into Hyundai G.F. Holdings.
※ The foregoing is subject to change based on future resolutions of the Board of Directors following the completion of the comprehensive share exchange.
Through this process, the operating company will be able to concentrate its human, physical, and informational resources on its core home shopping business, which is expected to enhance overall business competitiveness. In addition, the company is expected to be better positioned to pursue new businesses closely related to its core operations and to respond more flexibly to related investment opportunities. Improvements in business performance may lead to a market re-evaluation of the intrinsic value of Hyundai Home Shopping, and as the value of Hyundai Home Shopping increases as a wholly owned subsidiary, the corporate value of Hyundai G.F. Holdings, which holds whole shares, is also expected to increase, forming a virtuous cycle.
Meanwhile, key investment and management decisions regarding subsidiaries will be carried out consistently by Hyundai G.F. Holdings, enabling a more efficient structure for group-level investment decision-making and subsidiary management.
In addition, as the duplicate listing structure involving major subsidiaries and sub-subsidiaries(including Handsome, Hyundai Futurenet, Hyundai Bioland etc) is partially resolved and simplified, the holding company discount that has historically been applied is expected to be mitigated, thereby enhancing the potential for a market re-rating of corporate value.
Furthermore, as a holding company-centered subsidiary management framework is more clearly established, the transaction is expected to serve as an opportunity to transition the group’s governance structure toward a more transparent and efficient system.