Groupe Michelin will subscribe to two million shares of Hankook Tire Co. stock that were issued earlier today for $26 million. This will give Michelin 6.3% stake in the South Korean company.
The two million shares issued today represent 1.3% of Hankook's stock, say Michelin officials.
In 2003, Michelin and Hankook entered into "a cooperation agreement... which covers various operational areas," say Michelin officials.
"Both companies agreed that Michelin would purchase, over time, up to 10% of the share capital of Hankook."
Groupe Michelin is the top tire manufacturer in world tire sales with an estimated $17.6 billion in 2005, according to Modern Tire Dealer's 2006 Facts Issue.
Hankook is ranked 9th with $2.2 billion in 2005 sales.
