SEOUL (Reuters) -- Hyundai Motor and Kia Motors are bulking up their stakes in the automakers’ captive finance company by buying shares held by GE Capital.
The two will buy a 23.3 percent stake in auto financing affiliate Hyundai Capital from GE Capital, a unit of General Electric, for 703 billion won ($600.8 million), the automakers said Tuesday.
Hyundai, South Korea’s biggest automaker, plans to acquire a 3.2 percent stake, while Kia will buy a 20.1 percent stake, the two companies said in public filings.
Hyundai Motor also said it could buy GE Capital’s remaining 20 percent stake in Hyundai Capital in the future.
The transaction does not involve Hyundai Capital America, of Irvine, Calif., - which is owned by -- and supports the financing needs of -- Hyundai Motor America, Kia Motors America and their dealers.