News of November 9, 1999
Page 3 of 4
Group, Korea's largest conglomerate, Friday wrapped up its high-powered international road
show traveling the world's six financial hubs in Boston, the United States.
|Featuring top executives of its five subsidiaries - Hyundai Electronics
Industries, Hyundai Engineering and Construction, Hyundai Heavy Industries, Hyundai Motor,
Hyundai Merchant Marine, the group's first nondeal investors relations endeavor of this
size resulted in the boosted confidence by foreign investors in the Korean business group,
according to officials of organizing Merill Lynch and Hyundai officials.
for Merill Lynch, a U.S. investment bank, said that a total of 1,000 representatives of
important institutional investors had participated in the IR sessions, starting with 216
in Hong Kong and peaking at 226 in New York. In addition, Hyundai's top executives
conducted 150 one on one sessions with investors each session lasting for 30 minutes. One
of the Hyundai affiliates attracting the keenest foreign investors' interest was Hyundai
Electronics Industries which has emerged as the world's top semi-conductor maker following
the absorption of LG Semicon.
A Merill Lynch official said, "Even though this IR sessions were not organized to
promote specific deals, Hyundai Electronics received three or four commitments for
investment amounting to $150 million.'' He didn't elaborate citing terms of
confidentiality. He pointed out that while the road show was under way, Hyundai
Electronics stock price had risen to a far higher level than average in the Korean stock
Asides from the unexpected specific deals, Hyundai was satisfied that this road show
had accomplished what goals it had set out for at the beginning. In an interview, Park
Se-yong, executive chairman of Hyundai's corporate restructuring committee and top man of
the IR mission, said that albeit it remained to be seen what effects the road show would
eventually have, he was quite convinced that this international outing has cleared away
misunderstanding foreign investors held about his group and expelled their misgivings
about its future.
"Our messege is that we will meet the government-required 200 percent debt to
equity ratio by the end of the year and continue to seek a stable financial status in each
of affiliates under the optimal capital structure guideline even after that,'' Hyundai's
chief reformer said. ``The end result will be that Hyundai will concentrate on five core
areas of business - motor vehicle manufacturing, heavy industries, electronics,
construction and maritime transportation - each with global competitiveness. The road show
sent this messege direct and clear to our foreign investors.
One instance of the direct interaction between Hyundai and its foreign investors
occurred at the New York session held at Waldorf Astoria Hotel. Three questions were asked
by investors in the plenary session before breakup for individual session. One question
was whether or not the disaffiliation of subsidiaries would mean the severance of all ties
between each other.
This question struck at the heart of Korea's chaebol system that rely on cross-debt
guarantees and inhouse trading that are said to have plagued the corporate governance and
caused the near collapse of the country's economy in 1997. In reply, a Hyundai
representative said that the disaffilation means the separation of a pertinent subsidiary
and creation of a new entity.(New York)
Share buyback and cancellation
|November 2, 1999 - In compliance with the authorizations granted by the
Shareholders Meeting of June 2, 1999, Peugeot S.A. today cancelled 4,650,000 shares,
representing 9.3% of capital stock, acquired in 1999. There are now 45,470,420 shares
issued and outstanding.
As of the end of October 1999, Peugeot S.A. held 5,000,000
shares in treasury stock, including 1,502,000 acquired between January and May under the
June 3, 1998 shareholder authorization to trade in the Companys shares to stabilize
the market price, and 3,498,000 acquired since June under the June 2, 1999 shareholder
authorization to buy back up to 5,000,000 shares. The shares were acquired at a total cost
of euros 772 million, representing an average price per share of euros 154.14.
The Company may buy back a further 1,502,000 shares under the current authorization.
The buyback program is part of the PSA Peugeot CitroŽn Groups overall strategy to
promote growth, innovation and profitability. One of the Groups key objectives is to
quickly raise the return on capital employed to at least 12.5% and to ensure that the
Peugeot S.A. share price reflects this target.
These share buybacks have been carried out without sacrificing capital spending or
business growth. The Groups profitability improved sharply in first half 1999, as
reflected in the 34% period-on-period growth in consolidated cash flow to euros 1.644
billion. Capital spending increased by 30% compared with first half 1998, while sales for
the first nine months were up 10.5% on the same period of 1998.
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