April 20, 2024

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[THE INVESTOR] Park Sam-koo, chairman of Kumho Asiana Group, said on April 18 that he would not exercise his right to buy back a local tire-making affiliate currently under creditors’ control.

The state-run Korea Development Bank, the main creditor of Kumho Tire, said earlier that it will sell the country’s No. 2 tire maker to a Chinese firm unless Park exercises his right to buy back the company.

 

Kumho Asiana Group Chairman Park Sam-koo

The creditors signed a deal earlier this month to sell their combined 42.01 percent stake in the tire maker to Doublestar for 955 billion won (US$831 million).

Park has urged the KDB to allow him to form a consortium for the potential takeover, but the KDB said Park is required to show his intention by April 19 if he wants to take back the country’s No. 2 tire maker. The lender believes Park may face difficulties getting the necessary funding.

“I will not join in this unjustifiable and unfair sales process, and not exercise my buy back right. I strongly urge that bidding for Kumho Tire sales should be reopened in a fair manner,” Park said in a statement.

By Alex Lee and newswires (alexlee@heraldcorp.com)