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Hyundai Genuine Takes Off as Intermediate Holding Company to Oversee HHI Group's Construction Equipment Business
Hyundai Genuine, Hyundai Heavy Industries (HHI) Group's intermediate holding company controlling the construction equipment business, officially took off with a vision to rank among the top 5 in the global market by 2025.
HHI Group said on July 27 that it has entered the final stage of acquiring Doosan Infracore with co-CEOs of Hyundai Genuine appointed and the necessary clearance from local and overseas agencies obtained.
Holding an extraordinary general meeting (EGM) and a board meeting, Hyundai Genuine appointed Kwon Oh-gap, chairman of HHI Holdings, and Cho Young-chul, president of Korea Shipbuilding & Offshore Engineering (KSOE), as its co-chief executives.
"Mr. Kwon taking office as co-CEO of Hyundai Genuine is indicative of the Group's intention to foster the construction equipment business as one of its core businesses along with shipbuilding and energy while also upholding its commitment to responsible management," said a source from HHI Group.
Hyundai Genuine plans to complete the payment for the acquisition during August.
When the deal is completed, the company will have Hyundai Construction Equipment (HCE) and Doosan Infracore under its arm, set to become South Korea's symbolic brand representing the nation's construction equipment sector.
"Enhancing global competitiveness through heavy investments in the development of market-leading technologies, we will strive to position construction equipment among the Group's core businesses," said Cho Young-chul in his inaugural speech as co-CEO of Hyundai Genuine. "We aim to rank among the global top 5 with a market share of at least 5% by 2025 by maximizing the synergy between Doosan Infracore and HCE."
HHI Group recently obtained business consolidation approval from authorities in five countries, i.e., the Korea Fair Trade Commission and the respective antitrust regulators in Russia, China, Vietnam and Turkey, thereby completing all necessary preparation work for the acquisition of Doosan Infracore.
Subsequently, HHI Holdings held a board meeting on July 26 to resolve contributions in kind (i.e., its HCE shares) as well as in cash.
In accordance with the board resolutions, HHI Holdings is to contribute a 33.1% equity stake held in HCE in return for Hyundai Genuine's new shares and to participate in the new intermediate holding company's equity financing worth KRW 217.9 billion for the acquisition of Doosan Infracore.