(Adds details on stake sale, background)
SEOUL, June 30 (Reuters) – South Korea’s Hankook Technology Group Co Ltd said on Tuesday Chairman Cho Yang-rai sold his entire stake in the group to his younger son amid reports of a possible management tussle in one of the world’s top 10 tyre makers.
After the 23.59% stake sale, Cho Hyun-bum, president of South Korea’s leading tyre maker Hankook Tire & Technology Co Ltd, will become the largest shareholder with a nearly 43% stake in the parent company.
The firm did not disclose the value of the block deal, but the stake was worth 269 billion won ($224.70 million), as of Monday’s closing price.
Customers of the family controlled Hankook Tire include Hyundai Motor Co, Ford Motor Co and Volkswagen .
According to the company’s regulatory filing, the 48-year-old Cho has three siblings, each owning 19.32%, 10.82% and 0.82% stake in the group.
Shares of Hankook Technology Group surged as much as 9.4% and Hankook Tire rose nearly 5.7%, while the benchmark KOSPI was trading up 1.4% at 0300 GMT.
$1 = 1,197.1500 won
Reporting by Heekyong Yang and Hyunjoo Jin; Editing by Kim
Coghill and Sherry Jacob-Phillips