Seoul: Hyosung Group Chairman Cho Hyun-joon has divested a 4.9 percent stake in Hyosung Heavy Industries Co. to a significant U.S. tech-focused investment fund, the company announced Friday.
According to Yonhap News Agency, Hyosung Heavy Industries disclosed in a regulatory filing that Cho sold 456,903 shares of the company through an after-hours transaction at a price of 568,100 won (US$412.5) per share. The total value of the transaction is approximately 259.6 billion won.
As a result of this sale, Cho's ownership in Hyosung Heavy Industries has decreased from 14.89 percent to 9.99 percent. The primary shareholder in the company continues to be Hyosung Corp., the group's holding company, which maintains a 32.47 percent stake.
The U.S. investment fund had been investigating investment prospects within South Korea's power solution sector. The investment was reportedly made with an eye on Hyosung Heavy Industries' future growth potential and technological capabilities.
Hyosung further explained that discussions had been ongoing with the U.S. fund to form a strategic partnership. "This is a long-term investment by the fund focused on key growth sectors," a company official stated, emphasizing plans to strengthen their collaborative relationship moving forward.