Hyundai Department Store Holdings has announced a stock swap with Hyundai Home Shopping, paving the way for the latter’s delisting. This move integrates external shareholders of Hyundai Home Shopping into Holdings’ ownership structure.
Swap Ratio and Timeline
The exchange ratio sets one ordinary share of Hyundai Home Shopping equivalent to 6.357104 ordinary shares of Hyundai Department Store Holdings. Shareholders of Hyundai Home Shopping will vote on the proposal during a meeting scheduled for April 20, with completion targeted for June 30.
Regulatory scrutiny from the Fair Trade Commission remains possible. Recent valuations peg Hyundai Department Store Holdings at 9,383 billion won and Hyundai Home Shopping at 6,709 billion won.
Post-Swap Restructuring
Following the swap, Hyundai Home Shopping plans to divide into a retail investment affiliate and a business operations affiliate. The retail arm will encompass Hansom, Hyundai Furniture Net, and Hyundai L&C, aligning closely with Holdings.
The business affiliate will concentrate on core home shopping operations, personnel management, and mergers & acquisitions (M&A) activities. A new retail investment company will partner directly with Holdings to enhance synergies.
Group Perspective and Leadership Shift
Officials from the Hyundai Department Store Group stated, “The home shopping business operates in a distinct environment from traditional retail, yet this reorganization delivers clear synergies and bolsters our mid-to-large shareholder base.”
They added, “Hyundai Home Shopping emerges as a full-fledged affiliate of Holdings, enabling focused management of business and investment divisions while pursuing long-term growth and competitiveness.”
This transaction positions Hyundai Home Shopping as a pivotal mid-sized affiliate within Holdings, potentially freeing up leadership roles currently held by family members.
Family Stakes and Market Impact
Hyundai Department Store Group oversees more than 10 major subsidiaries, including department stores, home shopping, Green Food, Libart, Jinus, Iziwon, Pyuchonet, Everydime, and Samwon Gangjae. Post-swap, all 13 group presidents could shift to non-family leadership without family shareholdings.
The deal confirms the acquisition of family-held stakes valued at over 1,000 billion won. Group insiders note that combining new and existing family shares yields a market value exceeding 3,500 billion won.
“This stock acquisition method facilitates business value enhancement amid regulatory reviews for outright purchases,” a group representative explained. “It strengthens affiliates through accurate valuations and market-driven integrations.”
Even transactions involving private shares aim to elevate overall group valuations and enable strategic business entries. Government observers view it as a legitimate reorganization tactic, though they monitor share value impacts closely.
A senior official remarked, “We track business valuations per share rigorously, even amid mid-large shareholder changes. Comprehensive family share acquisitions or selective buys must align with fair practices.”
