Private equity, rivals enter prelim bids for $6 bln stake in Hanon Systems -newspaper (updated)

Hanon Systems

23/06/2021 05:11

(Adds Hanon Systems statement)
    By Joyce Lee
    SEOUL, June 22 (Reuters) - Private equity firms Carlyle
Group  CG.O  and Bain Capital, auto suppliers Valeo  VLOF.PA 
and Mahle were among those that entered non-binding bids to buy
a stake in South Korea's Hanon Systems  018880.KS  worth 6.6
trillion won ($5.81 billion) as of Tuesday, South Korean media
reported. 
    The bidders are looking into acquiring about a 70% stake of
auto supplier Hanon Systems on sale by majority shareholder,
local private equity firm Hahn & Company, as well as
second-largest shareholder Hankook Tire & Technology Co Ltd
 161390.KS , newspaper Korea Economic Daily reported on Tuesday
citing unnamed investment banking sources. 
    Hanon Systems said in a regulatory filing on Wednesday that
the majority shareholder is considering a stake sale with Morgan
Stanley and Evercore as advisers, but nothing has been decided.
    A spokesperson for Mahle declined to comment. Spokespeople
for Carlyle, Bain and Valeo did not have an immediate response. 
    Hanon Systems is the world's second-largest supplier of auto
thermal management systems such as heating, ventilation and air
conditioning, and reported a 6.9 trillion won revenue and 315.8
billion won operating profit in 2020, according to its
regulatory filing. 
    Shares in Hanon Systems closed down 4.1% compared with the
wider market's  .KS11  0.7% rise on Tuesday.  

($1 = 1,135.0600 won)

 (Reporting by Joyce Lee, editing by Louise Heavens)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))