Hyundai Elevator announced in a regulatory filing on the 16th that it has decided to sell 6.5 million shares of Hyundai Movex for 115.765 billion won. The disposal size amounts to 8.02% of the company's equity capital. The purpose of the share disposal is to secure funds for shareholder returns in line with its corporate value enhancement plan.

According to the filing, the scheduled disposal date is December 15, the board resolution date was October 16, and the shares to be sold are 6.5 million common shares of Hyundai Movex. Once the disposal is completed, Hyundai Elevator's holdings in Hyundai Movex will stand at 47,934,905 shares, or a 43.04% stake.

Simultaneous Execution of Share Sale and Price Return Swap

Hyundai Elevator stated that to dispose of part of its holdings, it plans to sign a share sale agreement with a counterparty while also entering into a Price Return Swap contract based on the same shares.

The share sale will be conducted through after-hours trading or over-the-counter sale, with the transaction price to be agreed upon later with the counterparty. The reference price of the price return swap contract will be set at the same level as the share sale unit price, and at settlement, the counterparty will mutually settle the difference between the actual sale proceeds and the reference price. The contract period is one year, with early settlement and one-year extensions possible.

The share sale and price return swap contracts are expected to be executed during the trading period from November 16 to December 15. However, the details may change depending on consultations with the counterparty.

Pricing Basis and Possibility of Withdrawal

The company explained that the planned disposal amount was calculated based on Hyundai Movex's closing price on October 15 of 17,810 won per share. Accordingly, the actual disposal unit price, number of shares, disposal amount, and post-disposal stake may differ.

In addition, if the Hyundai Movex share price rises or falls by more than 30% relative to the reference price before the transaction closing date, or if other circumstances defined by relevant laws and regulations occur, the transaction plan and this disposal decision may be withdrawn. If details change, the company plans to notify through a corrective disclosure.