The Wall Street Journal-20080122-Halla Engineering- Consortium Will Buy Stake In Maker of Auto Parts
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Halla Engineering: Consortium Will Buy Stake In Maker of Auto Parts
A consortium led by South Korea's Halla Engineering & Construction Co. will buy a 72.4% stake in automobile-parts maker Mando Corp. for 651.6 billion won ($691 million), Halla Engineering said. In a regulatory filing, Halla Engineering said the company has signed a contract to buy about 5.4 million common shares in unlisted Mando from its largest shareholder, Sun Sage BV. It will now form a consortium for the acquisition. Then, the level of each member's investment and stake size will be determined. "The consortium also plans to buy an additional 9.7% stake in the auto-parts maker held by Halla Group executives in the deal," a person familiar with the matter said. The deal will be closed at the end of March, he said. The consortium also includes Korea Development Bank; private-equity firm H&Q, which is owned by the Korea National Pension Service; and KCC Corp., he added. Halla Group, Halla Engineering's parent, is currently Mando's second- largest shareholder with a 17.9% stake, and its executives hold the remaining 9.7%.
