ERJ staff report (TB)
Clermont-Ferrand, France -- Group Michelin has sold its 9.98-percent stake in South Korea's Hankook Tire Co. Ltd., garnering about $560 million for the 15.2 million shares it held.
Michelin estimated it realised a gain of about $355 million on the sale of the shares, bought at various prices over several years starting in 2003.
Hankook shares are traded on the Korea Composite Stock Price Index or KOSPI market of the Korea Exchange.
Michelin said it intends to use the proceeds of the sale to improve its liquidity position and accelerate its industrial strategy in high-growth markets, in particular by optimising capacities for entry-level and medium-range passenger car and truck tyres.
The placement was handled by Michelin's Compagnie GÃ©nÃ©rale des Etablissements financial subsidiary and managed by Citigroup, acting as sole bookrunner.
From Tire Business (A Crain publication)