SoftBank's 9.65% stake expected to change hands for 500 billion won

The Hyundai Motor and Kia headquarters in Yangjae, Seoul [Hyundai Motor Group]
The Hyundai Motor and Kia headquarters in Yangjae, Seoul [Hyundai Motor Group]

Hyundai Motor Group is expected to acquire the remaining stake in Boston Dynamics held by Japan's SoftBank, giving the South Korean automaker full ownership of the robotics company.

Investment banking sources say key Hyundai Motor Group affiliates plan to hold board meetings soon to discuss acquiring SoftBank's roughly 9.65% stake in Boston Dynamics. The deal is expected to be valued at around $325 million (500 billion won).

The current ownership structure has Hyundai Motor holding 28%, Euisun Chung, chairman of Hyundai Motor Group, 22.6%, Kia 17.2%, Hyundai Mobis 11.3%, Hyundai Glovis 11.25% and SoftBank 9.65%.

Hyundai Motor Group acquired a controlling stake in Boston Dynamics from SoftBank in June 2021. The original deal included a put option allowing SoftBank to sell its remaining shares if an initial public offering did not take place within a set period, as well as a call option giving Hyundai Motor Group the right to buy those shares.

SoftBank's window to exercise its put option runs from June 21 through June 30, after which Hyundai Motor Group may exercise its call option.

Industry observers say Hyundai Motor Group is likely to proceed with the acquisition regardless of whether SoftBank exercises its put option.

Boston Dynamics is working to commercialize its Atlas humanoid robot, and Hyundai Motor Group has been expanding related projects with a target of mass production by 2028.

Boston Dynamics' valuation has soared as the physical AI market grows rapidly.

The market currently values Boston Dynamics at more than 30 trillion won. That is roughly 24 times the $1.1 billion (1.2482 trillion won) valuation placed on the company when Hyundai Motor Group completed its acquisition in June 2021.

Hyundai Motor Group is widely expected to pursue a Nasdaq listing for Boston Dynamics around 2027 or 2028, with analysts projecting the valuation will climb further by the time of any listing.

Chung, who holds a 22.6% stake in Boston Dynamics, is expected to gain financial resources that could be used to fund the inheritance of stakes in group affiliates.


dingdong@heraldcorp.com