CCMP Asia negotiates Korean car company exit

CCMP Capital Asia is reportedly looking to exit South Korean car parts company Mando for more than $1 billion, as the country´s authorities continue to treat firms in the region with hostility.

The Asian arm of CCMP Capital is negotiating the sale of Mando, valuing the South Korean car part manufacturing company at more than $1 billion (€682 million), according to UK newspaper Financial Times.

Interested bidders include US buyout firm Kohlberg Kravis Roberts as well as two industrial groups, the FT said. CCMP is also considering an initial public offering although this is a secondary option.

The company was bought by Swiss bank UBS and CCMP in 1999 for an undisclosed sum. 

Earlier this year the Korean government ruled Mando had not paid enough taxes between 2002 and 2006 and demanded 30 billion won ($32 million) in back taxes from the company, amid an increasingly unfriendly environment for private equity firms operating in the country.

Lone Star, a US buyout firm, is attempting to sell its 51 percent stake in Korea Exchange Bank to global bank HSBC for $6.3 billion, although the firm still needs clearance from the country’s authorities.

The deal has come under the scrutiny of the Korean authorities, which alleged the bank's value had been manipulated to enable the buyout firm’s acquisition of the bank in 2003. Lone Star´s attempt to sell the bank to local rival Kookmin last year was unsuccessful.

CCMP Capital Asia is raising its third fund with a target of $2 billion, according to the FT. It closed its second fund in 2005 on $1.7 billion. CCMP Capital also raised a $3.4 billion global fund on 30 October. The firm span out from US bank JP Morgan two years ago.