Controlling shareholders in Hanon Systems expect to receive preliminary bids for a combined 70% stake in the South Korean automotive thermal management systems manufacturer by Tuesday next week, according to local reports.
The company was previously known as Halla Visteon Climate Control Corporation, before Hahn and & Company took control in 2015. Hahn & Co currently owns 50.5% of the shares, while Hankook Tire Company is the second-largest shareholder with a 19.5% stake.
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Hanon Systems is listed on the Kospi (South Korean Stock Exchange), with a capitalization of KRW9trn (US$7.9bn) based on its current share price. Industry analysts estimate the company to be the second-largest global manufacturer of automotive HVAC systems.
Its sale is being managed by US banking giant Morgan Stanley and local analysts expect bids to be made by local conglomerates LG Group and SK Group, as well as by Halla Group which originally established the company in 1986 as a joint venture with Ford Motor.
German automotive parts maker Mahle, which completed the acquisition of Japanese air conditioning systems manufacturer Keihin Corporation earlier this year and of Behr Group in 2013, is also understood to have made a bid.
Financial investors including Carlyle Group and Bain Capital are also said to be in the running.
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By GlobalDataFrance’s Valeo, a global leader in automotive HVAC systems, is also understood to be interested although the company has denied it has submitted a bid.
