Michelin sells Hankook Tire stake at 12 percent discount
SEOUL |
SEOUL (Reuters) - Michelin (MICP.PA) sold all its 15.2 million shares, or a 9.98 percent stake, in South Korea's Hankook Tire (000240.KS) for 623 billion won ($555.7 million), the French tire maker said on Wednesday, sending Hankook shares down 8 percent.
The stake sale comes after shares in Hankook Tire, South Korea's top tire maker, hit a record high on November 4.
Michelin sold the stake at 26.64 euros per share or 41,000 won, a 12 percent discount to Tuesday's closing price, and well below its offered price range of 43,000-45,000 won.
The proceeds of the sale will allow it to accelerate its industrial strategy in high-growth markets, the firm said in a statement.
Hong Kong-based Finance Asia reported that slightly more than 50 investors took part in last night's transaction, including long-only investors and hedge funds.
Shares in Hankook Tire tumbled 8 percent as of 0038 GMT following the stake sale announcement.
Citigroup (C.N) acted as sole bookrunner for the deal.
(Reporting by Ju-min Park; Additional reporting by Saeed Azhar in SINGAPORE; Editing by Jonathan Hopfner)
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