UPDATE 1-Hyundai Corp sale plan sparks share rally
(Adds details, background)
SEOUL, Dec 26 (Reuters) - Major shareholders of South Korea's Hyundai Corp (011760.KS) will pick a lead manager soon to offer a majority stake in the company, a bank said on Friday, with news of the estimated $130 million deal sending its shares soaring.
Korea Exchange Bank (KEB) (004940.KS) said in a statement that 11 shareholders had agreed to put a stake in the trading and resources-development company up for sale in early 2009 and extend a debt rescheduling programme by one year to help it cope with the financial market squeeze.
The announcement pushed shares in Hyundai Corp up by the daily limit of 15 percent to a two-month high.
South Korean banks and a state agency, led by KEB and Woori Bank, own a combined 87.95 percent stake in Hyundai Corp after bailing out the former unit of the Hyundai Group in 2003.
Now they are planning to offer a 50 percent stake plus one share in the energy developer, altogether valued at 166.5 billion won ($127.6 million).
"We will accelerate the M&A process by picking a lead manager in January," KEB said in the statement.
The prospective sale comes as KEB is also moving to sell controlling stakes in both chipmaker Hynix Semiconductor Inc (000660.KS) and Hyundai Engineering & Construction (000720.KS).
In 2008, Hyundai Corp's operating profit is forecast to surge 133 percent from last year to 49.5 billion won, with sales seen up 68 percent to 2.7 trillion won, according to the KEB statement.
Its shares spiked to 14,950 won, their highest since Oct. 22's 16,000 won, bucking the wider market's 0.3 percent drop.
($1=1304.3 Won)
(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner)
