이 기사는 2020년 06월 30일 08:00 thebell 에 표출된 기사입니다.

South Korea’s auto parts manufacturer Hyundai Hitec has been put up for sale.

Hyundai Hitec is tapping strategic investors and financial investors, according to sources on June 26. Samjung KPMG is leading the sale process. The company’s enterprise value is estimated at approximately 30 billion won ($25 million).

Hyundai Hitec is a partner company of Hyundai Motor Group. Its main products include antenna for vehicles, rear camera module and LED (light-emitting diode) products for vehicles. The company has acquired surface mount technology (SMT) and chip-on-board (COB) technology through its R&D efforts. Financial investors with a clear understanding of vendors’ capacity and strategic investors seeking to create synergies with their existing business are considered potential buyers.

Hyundai Hitec was established by former employees of SK Hynix, formerly known as Hyundai Electronic Industrial, in 1998. It recorded sales of 30.5 billion won in 2019.

Currently, multiple auto parts makers have been put on standby for sale, including Hyudai Hitec. Myoung Shin is mulling to raise external funds from financial investors like SG Private Equity and Korea Investment Private Equity.

South Korea’s steel ball manufacturer Parkwon is also exploring selling a minority stake after a deal to sell a controlling stake collapsed last year. It counts major auto parts suppliers such as Schaeffler, SKF, Iljin and GMB Korea among its customers.

The country’s depressed auto industry hit by the coronavirus pandemic and mounting economic risks are expected to affect the sale process. Market insiders said narrowing the gap in valuation between the seller and potential buyers is likely to be the key to the deal.

(Reporting by Hye-ran Kim)