ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

Elliott loses bid for higher Hyundai dividend by landslide

US activist investor also rebuffed on board picks

Hyundai Motor President Lee Won-hee speaks at the annual shareholders meeting in Seoul on March 22.   © Reuters

SEOUL -- Hyundai Motor shareholders overwhelmingly rejected Friday a dividend payment roughly seven times what the automaker proposed, dealing a stinging blow to the American activist fund that put it forward.

Elliott Management, which holds a roughly 3% stake, proposed a dividend of 21,967 won (around $19) per share. This would have cost the automaker about 5.8 trillion won, including preferred stock -- nearly four times its consolidated net profit for 2018. Shareholders instead approved a 3,000 won dividend with nearly 90% of the vote.

The South Korean market widely saw the proposal as coming from an investor that does not plan to hold the stock for the long term.

Elliott's board picks also got the thumbs-down, with shareholders voting for three outside directors nominated by the automaker.

The 2019 shareholders meetings season is drawing attention as activist investors go up against the Hyundai Motor group and the Hanjin group, owner of Korean Air Lines. Hanjin holds its annual meeting next week.

Hyundai Motor's consolidated operating profit fell a sixth straight year in 2018 as it struggled in the top two auto markets of China and the U.S. Apologizing for last year's disappointing results, President Lee Won-hee predicted a tough year for the industry amid the persistence of falling American demand and stalling Chinese and European growth.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media