April 20, 2024

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[THE INVESTOR] Kumho Asiana Group Chairman Park Sam-koo will receive loan financing of 300 billion won (US$265.30 million) to buy back Kumho Buslines from a private equity fund, a local media outlet reported on Feb. 28.

Kumho & Co., the holding company of Kumho Asiana Group, selected a local brokerage firm Cape Investment & Securities to arrange the financing to buy back Kumho Buslines, according to The Bell. 

Park needs to raise about 430 billion won (US$380,274) to repurchase the nation’s largest express bus operator. According to sources, Kumho & Co. will fund 130 billion won, while borrowing the remainder of 300 billion won. 

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Earlier this month, Kumho & Co. signed an agreement with private equity fund Consus Asset Management to practice its call option, making a down payment of 50 billion won. Kumho & Co. expects to pay the rest of the amount and finalize the deal by end-March. 

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., that was launched last August through the merger of Kumho Terminal and Kumho Corp., now has the rights to exercise the option. 

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)