On December 1, Kia Motors and Asia Motors finalized a contract with Hyundai
Motor Company, paving the way for the latter to acquire a controlling interest in
the two automakers.
The agreement was signed by Hyundai Motor Chairman Chung Mong-kyu and
Ryu Jong-ryol, acting manager of Kia and Asia, at the headquarters of the
Commercial Bank of Korea in Seoul. The terms of the contract call for Hyundai
to pay a total of 1.178 trillion won for a 51 percent stake in the two firms: 841.5 billion
won for Kia and 336.6 billion won for Asia.
Moving forward with the takeover, Hyundai will submit a proposal for the write-off
of some 7.389 trillion won in existing loans for creditor and court approval by the
end of the year. The actual purchase of the shares is expected in late March 1999.