According to the Korea Herald, Mando’s major shareholder Sunsage, a Hong Kong-based joint venture of JP Morgan Partners and Affinity Capital, is seeking to sell Mando to Hyundai, but negotiations over the price have reached deadlock.
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The article reports that Sunsage is hoping for a price of between US$1.5bn and $2bn, but Hyundai thinks the price is too high, particularly given that Hyundai is Mando’s main customer and accounts for 70% of its sales.
Sunsage invested 600 billion won in the company in 1999, and has already taken 300 billion won out in dividends, according to the paper.
Sunsage had been seeking to a deal with Siemens, Continental or TRW, but in November last year started negotiating with Hyundai instead.
Mando’s former owner Halla, has also expressed a desire to own Mando again.
