ERJ staff report (LMH)
Paris --Michelin is selling its 10 percent stake in Hankook Tire, via an institutional private
placement by way of an accelerated bookbuilding. The move ensures there is no conflict of interest as Michelin attacks more markets in Asia, where Hankook is traditionally strong.
Korean tyre manufacturer Hankook Tire's shares are listed on the KOSPI Market of the Korea Exchange. "The sale of this financial shareholding is part of the Group Michelin's efforts to optimise its portfolio, in line with its new growth strategy," the company said in a 8 Nov announcement.
In improving its liquidity position, the proceeds of the sale will allow Michelin to accelerate its industrial strategy in high-growth markets, in particular by optimising and strengthening plants dedicated to the production of entry-level and medium-range segment products in the passenger car and truck tyre markets.
The bookbuilding will start 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.
Officially, the transaction will be carried out by Compagnie FinanciÃ¨re Michelin, a 100-percent owned subsidiary of Compagnie GÃ©nÃ©rale des Etablissements Michelin. The sale involves 15,195,587 shares of Hankook Tire, representing about 9.98 percent of the share capital of the Korean company.
Michelin said the press release does not constitute an offer to sell or a solicitation to purchase any securities, and the offer of Hankook Tire shares does not constitute a public offering.
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Press release from Michelin