Sale process for Hanon Systems making little progress It is unclear when final round of bidding will take place
Translated by Ryu Ho-joung 공개 2021-09-30 08:09:26
이 기사는 2021년 09월 30일 08:08 thebell 에 표출된 기사입니다.
The sale process for South Korean automotive supplier Hanon Systems is making little progress, raising doubts over whether a deal, which would be one of the biggest in South Korea this year, could be sealed in the near future.The company received preliminary offers on June 22 from several strategic and financial investors including US private equity giant Carlyle Group. Many expected the final round of bidding would take place at around the end of this month, but the timeline has apparently yet to be confirmed.
Although it depends on many factors, over the three-month period between bidding rounds is relatively long compared to other regular sales through an auction process, even after considering the effect of the Covid-19 pandemic and delays due to summer vacation and Chuseok holiday.
Potential buyers that expressed interest in the company have reportedly been conducting due diligence for the past few weeks. Hanon Systems, controlled by private equity firm Hahn & Co, has remained open to interest from other foreign strategic investors in addition to preliminary offers from bidders.
Carlyle is still in the race but is said to be taking more like a wait-and-see attitude. Some strategic investors are considering submitting final offers, but it remains to be seen how serious they are about acquiring the company, according to sources.
Hanon Systems had a market value of 8.27 trillion won ($6.99 billion) based on Wednesday’s close. The potential sale will include 50.5% and 19.49% stakes held by Hahn & Co and Hankook Tire & Technology, respectively. With a premium to the market price, a combined 69.9% interest in the company is estimated to be worth as much as 8 trillion won.
Many expected the bidding war to be dominated by large foreign strategic and financial investors given the size of the deal. Hanon Systems’ financial performance has been strong in recent years and its order book is supported by rising demand for electric vehicles. These factors could raise the company’s attractiveness to potential buyers and increase the negotiating power of the seller.
However, some are casting doubts over the certainty of the deal as the sale proceeds at a very slow pace even after the company’s financial performance in the first half of 2021 is believed to have been disclosed to potential buyers.
“The sale initially attracted strong interest, but now potential buyers seem to be less enthusiastic,” an industry insider said. “Selling the company by private negotiations rather than a private auction could have been a better choice for a speedy deal.” (Reporting by Hee-yeon Han)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 스튜디오산타클로스ENT, 주주권익 보호 '구슬땀'
- 이에이트, AI 시뮬레이션·디지털 트윈 기술 선보여
- MBK, '몸값 2조' 지오영 인수 SPA 체결 임박
- [2024 더벨 글로벌 투자 로드쇼-베트남]한인이 설립한 RCE, 세계 첫 ‘중장비 온라인 중고거래’
- 회계법인 해솔, 부동산 타당성 자문 업무협약
- [2024 더벨 글로벌 투자 로드쇼-베트남]베트남의 지오영 '바이메드'·전기오토바이 '셀렉스' 눈길
- 지아이에스, 코스닥 상장 위한 예비심사신청서 제출
- [꿈틀대는 토큰증권 시장]'업계 표준' 루센트블록, '두자릿수' 레코드 조준
- [Company & IB]조달 '막바지' 롯데그룹, 롯데케미칼에 쏠리는 눈
- '910억 CB 발행' 아스트, 경영 정상화 속도 낸다