Apollo Tyres refute buying Kumho, put an end to speculations.
Putting an end to a bout of speculations, Apollo Tyres, officially announced that it hadn’t been contemplating re-entering the bid to acquire Kumho. The statement came from Apollo in the wake of rumours doing the rounds about Apollo re-entering the fray to resume its attempts to buy Kumho tyres, world’s 12th largest tyre maker.
Kumho- a South Korean tyre brand, was in talks with Chinese tyre giant Qingdao Doublestar for its acquisition but the transaction failed, perhaps owing to the tensions caused by China’s political support to North Korea.
Amidst this scenario, Apollo Tyres, which was one of the top bidders for Kumho, got dragged into the confusion and the ‘fake news’ surfaced, sighting company’s attempts to renegotiate its bid.
Clearly refuting the news, Spokesperson from Apollo stressed, “Apollo Tyres strongly denied that they are back in Kumho race. The company would like to reiterate that it has no such intention of making any attempts to enter the process of acquiring Kumho Tyres”
The process of selling 42% controlling stake in the company was started last year by the creditors of Kumho Tyres, which include Woori Bank (14.2%), Korea Development Bank(13.5%) and KB Kookmn Bank(4.2%). Apollo was one of the top bidders but lost to Qingdao.