French tire maker Groupe Michelin has announced plans to sell its 9.98% stake in Hankook Tire Co. Ltd. Michelin said the move will provide funds which it plans to invest in high-growth markets, including Tier 2 and Tier 3 passenger and light truck tires.
Hankook Tire is the biggest tire maker in South Korea. A company spokesperson said the decision is solely Michelin’s, and has not required Hankook Tire’s involvement.
Michelin said the sale of this financial shareholding is part of the group’s efforts to optimize its portfolio, in line with the new growth strategy it presented to shareholders a year ago and in October 2011. The bookbuilding, which will start immediately, will be managed by Citigroup.