Schindler Holding AG, the second largest shareholder of Hyundai Elevator Co., said it is against the South Korean company acquiring a major stake in Hyundai Securities Co. amid lingering doubts over the conglomerate’s determination to sell its brokerage unit.

An official from Schindler Holding who asked to be unnamed due to the sensitivity of the issue said on Tuesday that the company is “strongly against” Hyundai Elevator buying Hyundai Group’s brokerage unit even if no other bidders contend to buy Hyundai Securities or they submit a lower price than the floor price set by Hyundai Elevator last month. “We can no longer accept the behavior of Hyundai Elevator spending internal funds to (save) other units of Hyundai Group,” the official said.

In February, Hyundai Elevator allowed Hyundai Group to set a bottom line for the sale price of its brokerage unit, and if other contenders offer lower prices than the proposed price of at least 650 billion won ($544.7 million) or no one shows up, it said it would exercise its right to buy a 22.56 percent stake in Hyundai Securities.

Schindler Holding, the world’s second-largest manufacturer of elevators that owns a 17.1 percent stake in Hyundai Elevator, has been in friction with Hyundai Group since the group’s elevator unit salvaged the financially-strapped Hyundai Merchant Marine Co. in 2011. The Switzerland-based company invested in the Korean elevator maker in 2006. Schindler Holding also filed a 718 billion won suit against Hyundai Elevator management including Chairwoman Hyun Jeong-eun for signing derivatives contracts to financially support Hyundai Merchant Marine Co.

Schindler Holding`s latest stance again stoked concerns over whether Hyundai Group could sell its brokerage unit as planned amid lingering doubts about the conglomerate’s determination to sell the brokerage unit. Shares of Hyundai Elevator closed down 1.3 percent at 52,100 in Seoul trading on Wednesday. Shares of Hyundai Securities increased 0.9 percent to 6,600 won.

Market participants keep an eye on how many contenders would submit a bid for Hyundai Securities or how much they would offer on the final auction day slated for Mar. 25. If no one bids or the bidding price is lower than the floor price of 650 billion won set by Hyundai Group, Hyundai Elevator is most likely to be named as the final bidder. An official from Hyundai Group said that the conglomerate has practically given up on its preemption rights to buy stakes in Hyundai Securities before anyone else and is putting out its best efforts to “sincerely” sell Hyundai Securities. The conglomerate expects competition to be fierce among bidders and that it will be able to receive higher bidding prices than the base price, the official said.

By Kim Hyo-hye

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