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Hankook Tire finalizes $892M buy-up of Hanon Systems shares

Published: 01 Nov. 2024, 18:45

PARK EUN-JEE
[email protected]

A promotional poster of Hankook Tire and Technology [HANKOOK TIRE AND TECHNOLOGY]

Hankook Tire and Technology signed a sales purchase agreement with a private equity firm to acquire a 23 percent stake in Hanon Systems, the world's second-largest automotive thermal management supplier, for 1.23 trillion won ($892 million).

The agreement, announced on Friday, will finalize the takeover deal to make the tire manufacturer the largest shareholder of Hanon Systems, which was previously owned by Han & Co. Auto Holdings.

Under the agreement, Hankook will purchase 122,774,000 shares for 10,000 won a piece to boost its total holdings to 54.77 percent. In 2015, the tire company bought 19.5 percent of Hanon Systems for 1.08 trillion won.

Daejeon-based Hanon Systems produces thermal solutions for automotive manufacturers. This includes heating ventilation, air-conditioning, powertrain cooling, compressors, fluid transport, electronics and fluid pressure.

Established in 1983, Hanon Systems is the No. 2 player in the market after Japan's Denso, holding 13 percent of the world's automotive thermal management supplier market.

BY PARK EUN-JEE [[email protected]]