CLERMONT-FERRAND, France (Nov. 8, 2011)—Michelin, through its Compagnie FinanciÃ¨re Michelin subsidiary, is liquidating its 9.98-percent shareholding in South Korea's Hankook Tire Co. Ltd.
Michelin—which first bought into Hankook in 2003 with a 5-percent share, then gradually increased its stake to the current 9.98 percent—said it is selling its 15.2 million shares of Hankook stock to “optimize its portfolio, in line with the new growth strategy it presented a year ago.” It originally said the investment was part of its plan to set up a global manufacturing network for its Pax run-flat tire-wheel system.
The company said it will use the proceeds to accelerate its industrial strategy in high-growth markets. In particular, Michelin cited its goals of optimizing and strengthening plants dedicated to the production of entry-level and medium-range passenger and truck tire segments.
Hankook shares are traded on the Korea Composite Stock Price Index or KOSPI market of the Korea Exchange.
Michelin has appointed Citigroup to handle the divestiture.