March 8 (Bloomberg) -- Mando Corp., the largest unit of South Korea’s Halla Group, is planning an initial share sale of its Chinese unit that may raise as much as 300 billion won ($275 million), two people familiar with the matter said.
The company plans a Hong Kong listing of the unit after selling a 30 percent stake during the second quarter, valuing Mando China Holdings at about 1 trillion won, said the people, who asked not to be identified because the plans haven’t been made public. Morgan Stanley and Deutsche Bank AG are handling the deal, which will involve the sale of existing and new stock, the people said.
The proceeds may help the Korean auto-parts maker fund acquisitions as Mando Chairman Chung Mong Won seeks to rebuild his business empire. Halla Group went bankrupt in 1997 after years of over expansion saddled it with at least 6.5 trillion won in debt.
Among companies Chung may be pursuing is former affiliate Halla Climate Control Corp., which is now controlled by Van Buren Township, Michigan-based Visteon Corp. Mando said in August it may offer to buy Visteon’s 70 percent stake in Halla Climate.
Mando had previously sought to list the Chinese unit in November, two people familiar with the matter said in September. The company said in February it revived those plans. Mando reiterated today that it’s planning a Hong Kong listing of the China unit. It declined to comment on the amount or the timing.