Hyundai Motor and two listed affiliates did not seek clearance from the Board of Directors for the size of their record $10 billion bid for a plot of land in Seoul, more than triple its appraised value, four board members of the companies told the media.
Thursday’s winning bid for the land sent shares in Hyundai Motor, Kia Motors and Hyundai Mobis plunging, wiping out $8bn in shareholder value.
While boards of the three firms discussed and approved bidding for the plot in the capital’s high-end Gangnam district to house a headquarters complex, hotel and automotive theme park, the bid price was not shared with directors as it was deemed to be confidential, three of the directors said.
