Daesung Eltec up for sale, shares fly by daily 30% limit

Shares of Daesung Eltec Co. touched daily ceiling Monday after the automotive infotainment system maker dubbed as a local component candidate to join the value chain of Apple’s electric vehicle project was put up for sale.

STIC Investment, a Seoul-based private equity fund that owns the largest 32 percent stake in Daesung Eltec, is out to offload its entire shares, according to investment bank industry sources on Sunday. Its sale advisor Deloitte Anjin reportedly will enter private talks with potential buyers as early as next week. Local auto parts makers including Mando and Hyundai Mobis are expected to vie for the stake.

On Monday, shares of Daesung Eltec finished at 1,570 won ($1.40) after rising by their daily permissible limit of 30 percent.

Market experts estimate the deal price at between 80 billion and 100 billion won – 40 million won for about 30 percent stake in Daesung Eltec, whose market cap currently hovers at around 120 billion won, plus management premium.

STIC Investment acquired Daesung Eltec stake for 37 million won in 2013, when the automotive infotainment system maker was facing delisting by the Korea Exchange due to business deterioration. The PEF has revamped the business with use of its management specialist unit Operating Partners Group.

Daesung Eltec registered 2.7 billion won in operating income on sales of 75.2 billion won in the July-September quarter last year.

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