[Courtesy of Dayou AP]
South Korea’s Dayou Winia Group sold its subsidiary, Dayou AP Co., to DH Global Co. amid the group’s struggles to improve its financial structure.
According to regulatory filings on Monday, Dayou Automotive Seat Technology Co., an affiliate of the group, agreed with DH Global on Friday to sell 4.87 million shares, or a 37.66 percent stake, of its subsidiary, Dayou AP, for 36.9 billion won ($28.5 million).
Dayou AP is a manufacturer of automobile parts such as steering wheels. Dayou Automotive Seat Technology stated in the filings that the sale of its shareholdings in the auto parts company is to repay borrowings and improve its financial structure, and the transaction is scheduled to take place on November 28.
Dayou Winia Group has been speeding up its asset sales as the bankruptcy that began at Winnia Electronics Co. affects its other businesses. Earlier in the month, the group sold its Montvert Country Club to Dongwha Group’s Mpark Co. for 300 billion won.
By Choi Seung-jin and Chang Iou-chung
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