China’s Doublestar Tyre Co. Monday signed an agreement with a group of creditors of Kumho Tire Co. to purchase the majority stake plus management right, all ready to become the new owner of the Korea’s second largest tire maker should ex-owner Park Sam-koo, chairman of Kumho Asiana Group, fails to match its price.
Its pledge of 955 billion won ($832.5 million) would give the Chinese company a 42.01 percent held by a group of creditors, or shareholders, as well as the management right if Kumho Asiana Group Chairman Park Sam-koo decides not to exercise his right of refusal, or priority in the company, over the next 30 days.
Doublestar had been selected a preferred bidder for Kumho Tire in an auction in January.
Doublestar in a press release Monday promised to respect independent operation and management at the Korean company. It forecast it could help Kumho Tire whose 40 percent of manufacturing capacity is based in China.
Park who had surrendered management right and stake in Kumho Tire to creditors led by Korea Development Bank (KDB) in 2009 after the transportation-strong conglomerate ran into liquidity troubles amid the global financial crisis has the right to buy back the company for the same price as the preferred bidder should it be placed on sale.
Park must come up with more than 955 billion won ($832 million) from his own pocket by this time next month as he cannot have any assistance from the group.
