May 08, 2024

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[THE INVESTOR] Kumho Asiana Group Chairman Park Sam-koo is receiving financial help from affiliates to ramp up his efforts to buy back Kumho Buslines from a private equity fund, according to a regulatory filing last week. 

Asiana Airport, Asiana IDT and Asiana Sabre -- three affiliates under Kumho Asiana Group -- have reportedly purchased an 80 percent stake in KA Invest for 40 billion won (US$34.65 million). 

KA Invest, a special purpose entity solely set up to facilitate the purchase of Kumho Buslines, is headed by Asiana Airlines Vice President Cho Kyu-young. 

The exact price tag of the deal is unknown, but according to market watchers, Park has to raise more than 400 billion won to repurchase Kumho Buslines, the nation’s largest express bus operator. 

Park sold Kumho Terminal’s 100 percent stake in Kumho Buslines to Consus Asset Management for 390 billion won in September 2015, in order to raise capital to reacquire another affiliate Kumho Industrial. At the time, Kumho Terminal was given a 27-month call option that allows the firm to buy back the company by January 2018.

Kumho & Co., the holding company of Kumho Asiana Group that was launched last August through the merger of Kumho Terminal and Kumho Corp., now has the rights to exercise the option. 

Park had previously planned to take over Kumho Buslines by the end of last year. 

The buyback plan is part of Park’s ambition to rebuild the 70-year-old conglomerate that was torn apart amid the liquidity crisis in 2009 due to the group’s excessive business expansion. 

Park is also firm on taking back Kumho Tire from the hands of creditors, competing against Chinese tire maker Qingdao Doublestar, which has been selected as the preferred bidder.

By Ahn Sung-mi (sahn@heraldcorp.com)