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Chinese tire maker picked as preferred bidder for Kumho Tire

All News 17:43 January 18, 2017

SEOUL, Jan. 18 (Yonhap) -- A Chinese tire maker was chosen as the preferred bidder for Kumho Tire Co., South Korea's No. 2 tire maker, its creditors said Wednesday.

The creditors of Kumho Tire Co., led by the state-run Korea Development Bank, said that Chinese tire maker Qingdao Doublestar Co. was selected as a preferred bidder for a 42.1 percent stake in Kumho Tire.

Qingdao Doublestar has reportedly offered to buy Kumho Tire for some 1 trillion won (US$844 million), industry sources said.

Earlier, Park Sam-koo, chairman of Kumho Asiana Group, parent for the tire maker, said he will exercise his right to buy back the affiliate.

The creditors will give notice to Park about whether he can buy back the local tire maker.

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.

Chinese tire maker picked as preferred bidder for Kumho Tire - 1

sam@yna.co.kr
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