이 기사는 2020년 02월 28일 08:00 thebell 에 표출된 기사입니다.

South Korea’s STIC Investments looks to sell its car infotainment and audio company, Daesung Eltec, with other players in the industry named as potential buyers.

STIC Investments has put its 55.5 percent stake in Daesung Eltec up for sale, sources with knowledge of the matter said on Tuesday. It has hired Deloitte Anjin to run an auction for the company.

The Seoul-based PE firm initially sought to sell the company through private negotiation. However, the firm changed its mind after several unsuccessful attempts, and is now planning to hold a public auction. It has been sounding out possible bidders ahead of an auction process.

Industry watchers are skeptical that other PE firms will show interest in the company to the extent that it has been experiencing a decline in earnings in recent periods. Instead, some industry players seeking for potential synergy might consider bidding for the company, they said.

“Daesung Eltec was acquired by STIC Investments almost seven years ago and still included in the firm’s portfolio,” an industry insider said. “The company would probably have more appeal to strategic investors than to PE firms.”

Among other potential bidders, Mando Corporation and Hyundai Mobis, the auto part unit of the country’s conglomerate Hyundai Motor Group, are being closely watched.

Mando and Daesung Eltec have similar product portfolios that include the AVN (Audio Visual Navigation) system and ADAS (advanced driver-assistance systems), while Hyundai Mobis has focused on securing autonomous driving and connected car technologies in line with its parent company's strategy to develop self-driving cars.

Daesung Eltec was selected to lead a national project for developing self-driving technologies in 2017, followed by acquiring Verasis, a local startup with expertise in ADAS solutions, in the following year. With continuous research and development, it has become the first domestic company that produced the AVN screen equipped with ADAS.

Acquiring Daesung Eltec would also allow the two auto part companies to diversify their revenue sources, which are currently heavily dependent on Hyundai Motor and Kia Motors, as Daesung Eltec reportedly has a wide range of customers that include not only Hyundai Motor and Kia Motors but also Renault Samsung Motors and GM Korea.

Foreign tech firms are also likely among potential bidders for the company, especially those looking to strengthen its position in the automotive electronics market.

“[STIC Investments] will likely to sound out potential strategic investors at home and abroad first,” the industry insider said. “The level of technology secured by Daesung Eltec is seen to be key to attracting sufficient interest.”

(By reporter Choi Ik-hwan)