May 2, 2018 / 5:56 AM / 5 months ago

Hyundai Mobis to buy back, cancel $174 million of own shares after Elliott pressure

SEOUL (Reuters) - Hyundai Mobis Co Ltd said on Wednesday it planned to buy back and cancel its treasury shares worth 187.5 billion Korean won ($174.31 million).

A vehicle camera is installed on the front grill of a Hyundai Motors' Grandeur sedan at Hyundai Mobis Research Centre in Yongin July 16, 2014. REUTERS/Kim Hong-Ji/Files

The South Korean auto parts maker said in a regulatory filing that the share repurchase and cancellation would take place for three years from 2019 as part of its plan to boost returns to its shareholders.

The company also said it will dispose off the treasury shares that it currently owns, worth around 400 billion won at market value, within the next year.

The announcement came after U.S. activist fund Elliott Management called for the company to increase dividends and cancel treasury shares.

($1 = 1,075.7000 won)

Reporting by Ju-min Park and Jane Chung; Editing by Muralikumar Anantharaman

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