Hyundai Motor Group is reported to have begun the process of securing 100% ownership of Boston Dynamics by sequentially convening board meetings at its affiliates starting with Kia on the 22nd. The group plans to acquire the remaining 10% stake in Boston Dynamics held by SoftBank. The market views this move as a step toward an initial public offering (IPO) of Boston Dynamics.

According to the investment industry on the 22nd, Kia held an extraordinary board meeting that day to brief internal and external directors on the status of Boston Dynamics’ shareholding structure and to discuss plans to acquire SoftBank’s stake (approximately 10%). Hyundai Motor and Hyundai Mobis are expected to undergo the same process within this month. The extraordinary board meeting is also said to have addressed ways to secure the funds needed for the future stake acquisition.

In terms of Boston Dynamics’ shareholding, Hyundai Motor Group’s investment vehicle HMG Global owns about 56%, Hyundai Motor Group Chairman Chung Euisun holds 23%, and Hyundai Glovis has 11%. HMG Global is a company owned by Hyundai Motor (49.5%), Kia (30.5%), and Hyundai Mobis (20%). In effect, the group’s core affiliates together with Chairman Chung hold 90% of Boston Dynamics. Once the remaining 10% stake from SoftBank is acquired, Boston Dynamics will become a wholly owned subsidiary of Hyundai Motor Group.

When SoftBank acquired its stake in Boston Dynamics on 21 June 2021, it set up a put option that allows it to sell the shares to Hyundai Motor Group at a specified price five years later. HMG Global and Hyundai Glovis also newly established a call option on those shares in August last year. Even if SoftBank decides not to sell its Boston Dynamics shares, Hyundai Motor Group will be able to compel the purchase from 21 July.

The market interprets Hyundai Motor Group’s establishment of the call option as a strategy to facilitate a smooth IPO process at the group level and to save additional costs that would arise from share purchases after the listing. Boston Dynamics is currently valued at around KRW 30 trillion, but forecasts suggest its market capitalization could exceed KRW 100 trillion after listing, implying a high likelihood of a substantial share price surge.

SoftBank, which has announced plans to invest about USD 500 billion (approximately KRW 769 trillion) to build large-scale data centers in the United States and the Asia-Pacific region, is also seen as highly likely to sell its stake in Boston Dynamics to secure funds. Business circles expect Hyundai Motor Group affiliates to discuss funding plans at their extraordinary board meetings and then move to approve execution at their regular second-quarter (April–June) board meetings in late July.

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