Hankook share sale a boost for Michelin entry-level and medium production
In order to place a greater focus on its own production of tier two and three tyres, Michelin plans to sell its share in Hankook Tire Co. Ltd. The French tyre maker announced on November 8 its intention to sell up to 15,195,587 shares, an amount representing approximately 9.98 per cent of Hankook’s share capital, through its 100 per cent owned subsidiary Compagnie Financière Michelin. According to Michelin, the sale of its Hankook share forms part of its portfolio optimisation efforts in line with the new growth strategy the company first presented a year ago and reiterated during its October 2011 investor day, specifically the optimising and strengthening of factories dedicated to producing passenger car and truck tyres in the entry-level and medium-range segments.
The sale of the shares, which are listed on the KOSPI Market of the Korea Exchange, will take place via an institutional private placement by way of an accelerated bookbuilding. The bookbuilding starts immediately and will be managed by Citigroup acting as sole bookrunner; the results of the private placement will be announced after the close of the bookbuilding process.
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