Park refuses to relinquish trademark rights to Kumho Tyre.
Kumho Asiana Group chairman Park Sam-koo is refusing to turn over Kumho Tyre’s trademark rights to China’s Qingdao Doublestar, the Korean press is reporting. Doublestar is currently in the process of acquiring the South Korean tyre company.
Park announced last week that he would not exercise his right to buy back the company’s tyre-making affiliate, but is offering no cooperation to help Doublestar acquire the brand, media said. If the deal goes through, Doublestar would become China’s largest tyre maker.
Kumho Industrial, an affiliate of Kumho Asiana Group, holds the rights to Kumho Tyre’s trademark until April 30, 2018. Although Park could shorten or revise the rights, the Kumho Asiana Group chairman is refusing. Park announced last week he was dropping out if the sale negotiation, allowing creditor banks and Doublestar to continue finalizing talks.
However, media report that his refusal to allow the Chinese tyre maker to use the Kumho Tyre trademark may cause further delays and may force creditors to lower the purchasing price or suspend the deal. Doublestar originally requested a maximum 20-year use of the Kumho Tyre trademark. The Chinese tyre maker signed a stock purchase agreement with Kumho creditors in March 2017 to purchase a 42.01% controlling stake in Kumho Tyre in a deal worth about $831 million. If the deal with Doublestar is not complete within six months, Park will be given a new pre-emptive right to purchase the shares.