MBK Partners ups Hankook bid

MBK Partners, a private equity firm in Asia, has increased its offer to buy a controlling stake in Hankook & Company, the parent company of Hankook Tire & Technology Ltd. On 17 December, MBK Partners raised its offer to acquire a minimum of 20.35 per cent and a maximum of 27.32 per cent of Hankook & Company by 20 per cent. The revised price now stands at 24,000 won ($18.40) per share, up from the initial offer of 20,000 won. The price is 51.4 per cent higher than the firm’s closing price of 15,850 won on Friday.

The bids come in the context of a wider ownership dispute. According to multiple South Korean news reports, MBK Partners is aligned with Cho Hyun-sik, the eldest son of the owner’s family and Cho Hee-won, his sister, who are reportedly attempting to retake management control from their younger brother Cho Hyum-bum, the current chairman.

Prior to that, Hankook & Company Honorary Chairman Cho Yang-rai bought 2.72 of the company shares since 7 December, two days after the public tender was launched. Local sources report that move was designed to support the position of his younger son, Cho Hyum-bum, the current chairman.