Hanon Systems set to get preliminary bids for controlling stake

SEOUL, June 22 (Yonhap) -- South Korean automotive thermal management systems and automotive parts maker Hanon Systems is set to receive preliminary bids Tuesday for a controlling stake, sources said.

Lead manager Morgan Stanley will receive the preliminary bids from prospective buyers for a 70 percent stake in Hanon Systems, formerly Halla Visteon Climate Control Corp., they said.

The stake up for sale, worth 6.9 trillion won (US$6.1 billion) as of Monday, is 50 percent owned by top shareholder Hahn & Company and the remainder held by Hankook Tire & Technology.

In 2015, Hankook Tire Co. and Hahn & Company acquired the interest from U.S. auto parts maker Visteon Corp., which took over Halla Climate Control Corp. from Halla Group after South Korea's 1997-98 foreign exchange crisis.

Market watchers said prospective buyers include South Korea's LG and SK groups. LG Group has been bolstering its electric vehicle parts business and will reportedly set up a joint venture with Canadian auto parts maker Magna International Inc. next month.

Other potential bidders include South Korea's Halla Group, which established Halla Climate Control Corp. in partnership with Ford Motor Co. in 1986.

French automotive parts maker Valeo, a key rival of Hanon Systems, is also known to be interested in taking over the stake.

Hanon Systems is a major supplier of automotive thermal and energy solutions systems used for EVs and conventional vehicles powered by internal combustion engines. Industry sources estimate Hanon Systems is the world's No. 2 player in the market.

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