By Park Hyong-ki
LS Group is in talks to sell LS Automotive to KKR, a U.S.-based private equity fund, the local mid-tier tech group said Thursday.
“LS is currently negotiating with KKR over a possible sale of LS Automotive,” an LS spokesperson said. “Due to holidays this week, it may take a while for both sides to reach a final settlement and announce the deal.”
LS declined to confirm any other news concerning LS Automotive, including its expected sale price of about 1 trillion won, given that the negotiations are still ongoing.
LS Automotive is wholly owned by LS Group’s LS Mtron, a track shoes manufacturer.
LS Automotive is an auto parts maker that produces switches, lamps and electronic sensors for carmakers such as Hyundai Motor, Kia Motors, GM, SsangYong Motor and Audi, according to its audit filing.
Its switch and lamp parts take up 80 percent of its total revenue.
LS Automotive posted a consolidated operating profit of 63 billion won in 2016, up from 36 billion won in 2015.
Its sales reached 911 billion won, up from 808 billion won a year earlier.
The parts maker’s current liabilities stood at 404 billion won, which was above its current assets of 344 billion won.
LS Group has been seeking to raise capital through liquidation or stock listing to reduce its debts.
It listed LS Cable & System Asia on the KOSPI last year. The group has also been trying to either liquidate or list LS Automotive since 2015.
KKR is well known for its acquisition of RJR Nabisco, a food and tobacco giant, whose story has been depicted in books and on TV. The private equity fund and Affinity Equity Partners sold Oriental Brewery to Anheuser-Busch InBev for $5.8 billion three years ago.