Three months after Hyundai Motor scrapped a controversial restructuring plan, the South Korean carmaker is considering another restructuring to improve its corporate governance. The company’s controlling Chung family is considering selling 10% of its stake to loosen its control.
[activistinvesting]
Q2 hedge fund letters, conference, scoops etc
The initial plan was aborted following pressure from activist investor Elliott Management and proxy advisory firms Glass Lewis and Institutional Shareholder Services. The company has also been facing pressure from the country’s Fair Trade Commission to remove the complex web of its cross-shareholding ownership structure, which allows the descendants of the group’s founders to exercise control with only a small stake.
What we’ll be watching for this week
- Will APFT announce a special meeting date requisitioned by concerned shareholders?
- Will the Securities and Exchange Commission launch an investigation into Elon Musk’s tweets regarding taking Tesla private?
- Will Barclays bend to Ed Bramson’s Sherborne Investors and replace its chairman?
Activist shorts update
Jewelry maker Folli Follie’s chief financial officer, Frangiskos Gratsonis has resigned amid an investigation of the company’s financials launched following a short report.
The company’s audit committee asked Gratsonis to remain available during the audits performed by EY and Alvarex & Marsal and until a replacement is found. Earlier this month, Greece’s Hellenic Capital Market Commission imposed a 4 million euro fine on the company and nine individuals, citing market manipulation over its 2017 financials.
Quintessential Capital Management revealed a short position in Folli Follie in May at Kase Learning’s short-focused conference, claiming the company’s business in China may be worth $50 million instead of $1 billion as it had stated. Folli Follie’s shares have been suspended from trading at its own request until the audit is completed.
To arrange an online demonstration of Activist Insight Shorts, email us or view our product brochure to find out more.
Chart of the week
The proportion of public activist demands made at U.S.-headquartered companies that were M&A related (between January 1 and August 10)
Article by Activist Insight
