South Korea-based conglomerate LS Group is reportedly in negotiations with US investment firm KKR over the sale of LS Automotive, the group's automotive electric parts-making unit, according to a report in the Korea Herald.
The report said that KKR is expected to pay the market capitalisation of around 1 trillion won (USD0.9bn).
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The Korea Herald noted that LS Automotive is Korea's top domestic automotive switch and relay manufacturer in terms of market share.
In response to the news reports, an LS Group spokesperson was quoted by Yonhap News Agency as saying that "nothing has been decided."
The Herald noted that LS Group has been seeking to sell LS Automotive since 2015. KKR is known to be evaluating opportunities in the automotive supplier sector globally, as it is seen as a high growth potential area.
LS Automotive could be seen as well-placed as a supplier to Korean and Chinese OEMs in the future.
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By GlobalDataIn 2016 the company changed it name from Daesung Electric to LS Automotive. It was first established in 1973.
