Michelin says it has completed the private placement to institutional investors of 9.98% of Hankook Tire shares with gross proceeds worth around EUR405m (US$554m) leading to a gain for the French group of around EUR255m.

Hankook Tire is the leading tyre manufacturer in Korea and its shares are listed on the KOSPI Market of the Korea Exchange.

Michelin noted the sale “is part of the group’s efforts to optimise its portfolio in line with the new growth strategy” it presented a year ago.

Michelin added the proceeds of the sale will allow it: “To accelerate its industrial strategy in high-growth markets, in particular by optimising and strengthening plants dedicated to the production of entry-level and medium-range segment – Tier 2 and Tier 3 – products in the passenger car and truck tyre markets.

Following this placement, Compagnie Financière Michelin will no longer hold any Hankook Tire shares.