Hyundai Divests Manufacturing Facilities In Russia, Reportedly Takes $219M Loss On Strategic Sale
Portfolio Pulse from Lekha Gupta
Hyundai Motor Co (OTC:HYMTF) is selling its manufacturing plant in Russia to Art-Finance LLC for a nominal 7,000 roubles ($77.67). The company has disclosed a loss of 287 billion won ($219.19 million) on the sale. The St. Petersburg-based facility has been inactive since March 2022. Despite the divestiture, Hyundai plans to continue providing after-sales services in Russia. HYMTF shares dropped by 2.82% to close at $41.30 on Monday.
December 19, 2023 | 12:17 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Hyundai Motor Co is divesting its Russian manufacturing plant at a significant loss, which has already impacted its stock price with a 2.82% decline.
The sale of Hyundai's Russian plant for a nominal sum and the associated large financial loss are likely to be viewed negatively by investors, as reflected by the recent drop in share price. The ongoing provision of after-sales services in Russia may mitigate some concerns, but the primary focus for investors is the financial impact of the divestiture.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100