South Korean shipowner Hyundai Glovis is taking on additional business from sibling Hyundai Mobis as part of a restructuring of the group.
The shakeup announced today will cut Wilhelmsen’s stake in Glovis which is held by separately listed Treasure ASA.
The plan will see Glovis take on after sales parts and module businesses from Mobis.
In a presentation, Glovis explained the changes awere in response to enhanced business competitiveness and a rapidly changing automotive industry.
It is also a response to governmental and market demands to eliminate potential issues of circular ownership and affiliate transactions.
Glovis looks set to benefit financially from the move, according to numbers presented today.
Its 2017 revenue of KRW 16.36 trillion would be almost doubled to KRW 30.37 trillion.
Pre-tax profit for the same period would rise from KRW 890 bn to KRW 2.33 trillion ($2.2bn).
The presentation said the reshuffle is expected to be completed in July.
Treasure, which holds the Glovis shares for Wilhelmsen, said its stake would fall from 12.04% to 4.65%.
Its own stock shot up by more than 5% following the announcement this morning.
It last traded at NOK 15.85 each, giving Treasure a market capitalization of NOK 3.49bn ($449m)
