Global tyre giant Michelin has sold its share in South Korea's Hankook Tire as it looks to invest in fast-growing markets.
The French firm has announced that it has offloaded its 9.98 per cent stake in Hankook for around 623 billion won (£348.9 million). Hong Kong-based news provider Finance Asia has reported that more than 50 investors, which included hedge funds, took part in the transaction.
Michelin has estimated that it made a profit of around $355 million (£222.9 million) on the sale of the shares, which were bought at various prices since the two firms began their partnership in 2003.
In a statement, the firm revealed that the funds will be used to further its strategy of investing in high-growth markets, such as China, India and Brazil.
Under a cooperation agreement between the two firms, Michelin was to increase its holding to ten per cent and last upped its stake in Hankook in 2008.
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Posted by Danielle Barge