Compagnie Générale des Etablissements Michelin announces the successful completion of the private placement to institutional investors by Compagnie Financière Michelin of 15,195,587 shares of Hankook Tire, representing approximately 9.98% of the share capital of the company, at a price of €26.64 per share1. The estimated gross proceeds from the transaction amount to €405 million1, corresponding for the Michelin group to a gain amounting to approximately €255 million.
Hankook Tire is the leading tire manufacturer in Korea and its shares are listed on the KOSPI Market of the Korea Exchange (the “KRX”). The sale of this financial shareholding is part of the Group’s efforts to optimize its portfolio, in line with the new growth strategy it presented a year ago and reiterated, in particular, during the October 2011 investor day. In improving its liquidity position, the proceeds of the sale will allow the Group to accelerate its industrial strategy in high-growth markets, in particular by optimizing 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 tire markets.
Following this placement, Compagnie Financière Michelin will no longer hold any Hankook Tire shares.
The placement was managed by Citigroup, acting as sole bookrunner.
This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities, and the offer of Hankook Tire does not constitute a public offering.
This announcement is for information purposes only and does not constitute an offer to
sell or a solicitation to purchase any securities, and the offer of Hankook Tire shares by
Compagnie Financière Michelin does not constitute a public offer of securities in any
jurisdiction, including France, Korea and the United States.
This communication is for distribution in the United Kingdom only to (i) investment
professionals falling within article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (ii) high net worth entities and other
persons to whom it may lawfully be communicated, falling within article 49(2)(a) to (d)
of the Order (all such persons together being referred to as "relevant persons").
A registration statement for the offering and sale of the securities referred to in this
announcement has not been filed with the Financial Services Commission of Korea, and
the offer of Hankook Tire shares by Compagnie Financière Michelin is solely restricted to
the sale and purchase to take place during the pre-hours trading session prescribed by
the KRX and does not constitute an offer to sell or a solicitation to purchase any securities in any other way, except as otherwise permitted by applicable Korean laws and regulations.
The offer and sale of the securities referred to in this announcement has not been, nor
will be, registered under the United States Securities Act of 1933 (the "Securities Act")
and the securities may not be offered or sold in the United States absent such
registration or an applicable exemption from the registration requirements of the
Securities Act. There will be no public offering of the securities in the United States in
connection with this transaction.
Any investment decision to purchase shares in Hankook Tire must be made solely on the
basis of publicly available information regarding Hankook Tire. Such information is not
the responsibility of Compagnie Financière Michelin or Compagnie Générale des
Release, publication or distribution of this press release is forbidden in any country where
it would violate applicable laws or regulations.
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This press release is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documents filed in France with Autorité des Marchés Financiers, which are also available from the www.michelin.com website.
This press release may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions as at the time of publishing this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or inferred by these statements.