YOON&YANG

Erae Automotive System (formerly, Korea Delphi Automotive Systems), a Korean automobile parts manufacturer, conducted a spin-off to separate its non-air-conditioning business from its air-conditioning parts business. Following the spin-off, Shanghai Aerospace Automobile Electromechanical Co., Ltd. (HT-SAAE) purchased 51% of the Erae’s shares on January 31, 2018. Yoon & Yang, on behalf of HT-SAAE, conducted due diligence on the target, and provided legal advice to the buyer in connection with the spin-off and share purchase, etc.
This transaction involved a spin-off of the target company and the purchase of shares after the spin-off.
This transaction was noteworthy in that a Chinese company owned by the Chinese government was able to successfully acquire a Korean company in spite of difficult circumstances including THAAD issue, etc.