DCX Acquisition of 10.5 Percent Stake in Hyundai Motor Proved Good Investment
DaimlerChrysler is cash rich to the tune of USD$912 million after selling off its Hyundai Motor Co. Ltd stock yesterday. The world's
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| In order to raise some cash, DaimlerChrysler has sold its 10.5 percent share in Hyundai Motor Co. for USD$912 million. (Photo: Hyundai Auto Canada) |
"Our proceeds were just over $900 million," a DaimlerChrysler spokesman commented.
The automaker was quick to state that it has no intention of pulling out of current or future projects it has partnered with Hyundai on, including the joint venture engine plant that Mitsubishi Motors Corp. is also in on.
"Our projects continue, world engine and the like," the spokesman added.
Part of DaimlerChrysler's deal with Hyundai includes disturbing some of the Korean automaker's models in Mexico. The two companies also are involved in some joint purchasing.
Was it a good investment? On paper, at least, it looks like it was a very good move. DCX purchased 10 percent of Hyundai in June of 2000 for USD$428 million, raising its stake again in 2001 to 10.5 percent. In total, the
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| It is thought that much of the money raised from the Hyundai stock sale will go to reinforce DaimlerChrysler's Mercedes-Benz division which has sustained recent losses. (Photo: Mercedes-Benz Canada) |
Goldman Sachs acted as broker, selling off 45.8 million in global depositary receipts to financial institutions. The shares fetched USD$19.92 apiece. To speed the sales process the Hyundai stock was offered at discounted prices, selling for 5 percent under the current trading price.
The sale of Hyundai Motor stock shouldn't come as a surprise, being that on May 12 both companies announced the DCX would divest after kyboshing a joint commercial vehicle venture.
Despite Hyundai's growing presence on the world market, the move is seen as positive in DCX camps.