(MENAFN) Hyundai Motor Group on Monday pulled back a key spinoff merger plan in a setback to its corporate restructuring amid stepped-up opposition campaigns by some investors.
The decision comes as global hedge fund Elliott and proxy advisers such as Institutional Shareholder Services (ISS) continued to take issue with the carmaker's proposed corporate governance overhaul plan, citing that the "unfair" swap ratio of stocks between two affiliates of the conglomerate will impact shareholders' value.
Vice chairman of the company said: "(In a new plan) we will fully reflect the views and advice that our shareholders and investors have suggested since the governance restructuring plan was announced (in March). We have realized that there was a lack of communication with our shareholders and the markets (over the plan)."
Hyundai said that the new plan has not yet decided whether to fully revise the existing proposal or when to announce it, but it will come up with a thoroughly improved plan.
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