Will Kumho Asiana Group exercise it’s right to buy back Kumho Tire?
According to some media reports, Kumho Asiana Group will exercise its right to buy back the Kumho Tire unit from its creditors currently up for sales.
The creditors of Kumho Tire Co., led by the state-run Korea Development Bank, are likely to announce this week a preferred bidder for a 42.1 % stake in South Korea’s No. 2 tyre maker, with a Chinese tyre maker reportedly picked as the prime bidder, added the report.
“It is right to exercise the right to buy back (Kumho Tire),” Kumho Asiana Group Chairman Park Sam-koo told Yonhap News Agency. “I have not yet been informed of (the preferred bidder) by the creditors.”
Chinese tyre maker Qingdao Doublestar Co has received the highest score in the evaluation of price offer and other terms in the bidding that closed last week, industry sources said.
Qingdao Doublestar has offered to buy Kumho Tire for some US$844 million, the sources said. “There are many options for me,” Park said regarding how to raise money to buy back the tyre-making affiliate.
The creditors will give notice to Park about whether he can buy back the local Park has a month to make a decision after getting the related notice from the creditors.
Industry sources expect Park may set up a special purpose company to buy back Kumho Asiana with the help of a few financial investors.
Kumho Tire was placed under a creditor-led workout program in 2009, with its parent Kumho Asiana hit hard by a liquidity crunch from the takeover of Daewoo Engineering and Construction Co.