Hyundai Mobis (012330) has signed a definitive agreement with French auto parts maker OP Mobility to sell its automotive lamp business.
Hyundai Mobis said in a regulatory filing that it held a special board meeting on the 30th and approved a plan to spin off the lamp business into a separate entity. The company also signed a share purchase agreement, or SPA, with OP Mobility for the lamp division the same day. An SPA is a definitive contract that sets the terms for buying and selling a company's shares. The deal is valued at 600 billion won ($430 million).
The spin-off is scheduled for April 1, 2027, after which the new entity will be sold to OP Mobility. Hyundai Mobis said the decision is aimed at strengthening new growth drivers and the competitiveness of its core operations. By divesting the lamp business, which it considers non-core, the company plans to focus on automotive semiconductors, robotics and software-defined vehicles.
"This is an important turning point in strengthening our business fundamentals for the shift to future mobility," a Hyundai Mobis official said. "The sale of the lamp business will ultimately contribute to enhancing corporate value and shareholder value."
Hyundai Mobis' lamp business posted revenue of 2 trillion won last year. It currently operates five production plants in South Korea, China, Mexico and the Czech Republic. The company signed a memorandum of understanding with OP Mobility in January to transfer the lamp division, then spent eight months negotiating details including the transaction structure and the separation plan before reaching the definitive agreement. Rights and obligations tied to the employment of about 400 workers subject to transfer within the divested division will move to the newly created company.
The office and research workers' union and others, however, continue to push back, arguing that management pushed through the sale unilaterally and is forcing employees to transfer. The union is weighing an injunction request after reviewing the definitive agreement. Hyundai Mobis said it will continue explaining to the union why the sale is unavoidable and will begin follow-up work on the lamp spin-off and the establishment of a new operating structure.
Procedures required for the sale, including a shareholder meeting and a business combination filing, will also proceed in sequence.
