SEOUL (Bloomberg) -- South Korean buyout fund Hahn & Co. is considering purchasing shares in Halla Visteon Climate Control Corp. from Visteon Corp., a person familiar with the matter said.
The person asked not to be identified because the discussions are private. The person declined to comment on a Korea Economic Daily report that said Hahn reached a preliminary agreement to buy the shares for about 4 trillion won ($3.6 billion). Visteon’s 70 percent stake was valued at 3.55 trillion won based on the stock’s last close.
Visteon has been considering selling its stake in Halla Climate since 2012. CEO Tim Leuliette said in April last year that the company was weighing unloading at least a portion of its stake.
Halla Climate used to be part of South Korea’s Halla Group before the conglomerate went bankrupt in 1997 after years of overexpansion saddled it with at least 6.5 trillion won in debt. Mando Corp., the flagship of Halla Group, has expressed interest in buying the former affiliate as Chairman Chung Mong Won seeks to rebuild his family’s business empire.
Representatives at Visteon, Halla Visteon Climate, Halla Group and Hahn declined to comment.
Halla Climate fell 12 percent in Seoul trading, its steepest loss since 2012. A sale to a private equity firm would fuel concerns about changes to the supplier’s growth strategy, wrote Esther Yim, an analyst at Samsung Securities Co.