Hyundai Mobis confirms sale of lamp unit to France's OP Mobility next April

Hyundai Mobis has finalized the sale of its automotive lamp business — which generates annual sales of around 1 trillion won ($736 million) — to French auto-parts maker OP Mobility. The company signed a share purchase agreement with OP Mobility and will spin off the lamp division through a physical split-off next April before transferring the entire stake in the newly created entity. The deal closes roughly nine months after the sale process first surfaced late last year.

Hyundai Mobis held an extraordinary board meeting Wednesday, approving the physical split-off of its automotive lamp division and disclosing that it had signed the share purchase agreement with OP Mobility.

The spin-off covers the design, development, testing, production and sale of headlamps, rear lamps and exterior body lamps for passenger vehicles. Stakes in domestic lamp-related subsidiaries will also transfer to the new company. However, the after-sales parts supply, distribution and management business for Hyundai Motor and Kia vehicles is excluded from the split-off.

The new entity will be named Hyundai Mobis Lamp Co. Hyundai Mobis will first establish the company as a wholly owned subsidiary through a simple physical split-off, then sell the entire 100 percent stake to OP Mobility. The planned split-off date is April 1 next year. The sale price is understood to be around 600 billion won.

The lamp division posted sales of 1.02 trillion won last year. The new company's assets are estimated at about 541.5 billion won, liabilities at 165.5 billion won and equity at 376 billion won.

Overseas lamp operations will follow a separate process. Lamp businesses held by Hyundai Mobis' foreign subsidiaries are excluded from the domestic physical split-off and will instead be sold to OP Mobility through separate procedures under applicable local laws.

Employees currently working in the lamp division will also transfer to the new company. Workers whose primary duties are in the lamp business as of the split-off date will have their employment contracts, years of service and working conditions carried over to the new entity.

Hyundai Mobis plans to establish an independent management structure for the lamp business by separating it into a standalone company, then boost its global competitiveness by combining it with OP Mobility. The parent company intends to use the proceeds from the sale to strengthen its existing core businesses and invest in future growth areas.

The deal follows about eight months of negotiations on transaction structure and business separation after the two companies signed an MOU in January to transfer the lamp business.

The remaining hurdle is shareholder approval. Hyundai Mobis will hold an extraordinary general meeting at GS Tower in Seoul on Nov. 24 to vote on the spin-off plan.

Shareholders who oppose the split-off will be granted appraisal rights. The expected buyback price is 408,394 won per common share.

However, Hyundai Mobis has attached a condition allowing it to halt and withdraw the split-off through a board resolution if the total amount of appraisal rights exercised exceeds 230 billion won.

Hyundai Mobis describes the sale as part of a broader restructuring effort centered on focus and specialization. Spinning off the lamp unit will sharpen its expertise and competitiveness in that segment, while the remaining entity concentrates on its core businesses and investment in new growth areas.