UPDATE 1-Michelin sells stake in Korea's Hankook Tire


* Plans to sell 9.98 pct stake in Hankook Tire

* Could raise up to $610 mln from stake sale-source (Adds details)

By Elena Berton and Elzio Barreto

PARIS, Nov 8 (Reuters) - French tyre maker Michelin said it would sell its 9.98 percent stake in Korean peer Hankook Tire in a move to streamline its portfolio and generate cash.

Michelin could raise up to $610 million through the sale, a person with direct knowledge of the plans told Reuters on Tuesday.

The French company is selling 15.19 million shares in Hankook at a price of 43,000-45,000 won each, equivalent to a discount of 3.5-7.8 percent on Tuesday's closing price of 46,650 won ($41.76).

The bookbuilding will start immediately and will be managed by Citigroup , Michelin said.

The proceeds of the sale, which is being done through an institutional private placement, will allow Michelin to accelerate its expansion strategy in high-growth markets, the company said.

Shares in Michelin, which have lost around 6 percent of their value this year, were trading 1.5 percent higher at 51.15 euros at 0822 GMT.

(Additional reporting by Daniel Stanton; Editing by James Regan)



Follow Us

Sponsored Introduction Continue on to (or wait seconds) ×