Mando Corp. (060980), which makes brakes and steering systems, said it may buy the South Korean National Pension Service’s holdings in auto-parts maker Halla Climate Control Corp. (018880)
Mando has reached an agreement to buy all or part of the National Pension Service’s 8.1 percent stake in Halla should the pension fund decide to sell, the Pyeongtaek, South Korea-based auto-parts maker said in a regulatory filing today. Financial terms weren’t disclosed.
The preliminary accord comes two weeks after the pension fund, South Korea’s largest institutional investor, blocked Visteon Corp. (VC:US)’s plan to buy the 30 percent of Halla it doesn’t yet own. Today’s deal means that any revival of a Visteon offer would need Mando’s approval, said Lee Sang Hyun, a Seoul-based analyst at NH Investment & Securities Co. (016420)
Halla, based in Daejeon, South Korea, fell as much as 15 percent in Seoul trading after the announcement. Mando declined as much as 2.1 percent.
The National Pension Fund stake in Halla is large enough to block a Halla offer because Korean rules require Van Buren Township, Michigan-based Visteon to get approval from investors representing 95 percent of the acquisition target’s stock to carry out a buyout.
To contact the reporter on this story: Rose Kim in Seoul at firstname.lastname@example.org
To contact the editor responsible for this story: Young-Sam Cho at email@example.com