Hankook to spin off tyre unit

ERJ staff report (DS)

Seoul - Hankook Tire is to be split off as a separate tyre business from the rest of Hankook's operations - mainly investment activities. A Korean-language filing on the Korea stock exchange dated 25 April sets out the plans.

The company said the move is being taken to ensure financial stability and to ensure that the tyre business has a clear, strong business focus. The split is likely to take place on 1 September this year, subject to shareholder approval.

After the split, the tyre activity will be called Hankook Tire Co Ltd and will have sales of around KRW 3953 billion (euro 2647 million). The stock exchange filing said a new stock exchange listing is planned for the new company.

The remaining activity - mainly investments -- will be called Hankook Tyre Worldwide Co Ltd and will have sales of around KRW 2.385 billion (euro 1.6 million).

A shareholders meeting is scheduled for 27 July to approve the plan

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Stock exchange announcement from Hankook via Korean Stock Exchange (Korean language)