April 26, 2024

• 

[THE INVESTOR] Creditors of Kumho Tire said on Sept. 6 they decided to reject a demand by China’s Qingdao Doublestar to cut its bid price for a controlling stake.

If Doublestar expresses its willingness to renegotiate with creditors about the price, both sides can resume talks. If not, the contract to sell Kumho Tire to Doublestar will be canceled. 

The decision came after a meeting of the creditors, led by state-run Korea Development Bank, earlier in the day.

Doublestar signed the 955 billion-won (US$844 million) contract with the creditors in March to buy a 42.01 percent stake in Kumho Tire.

After months of a bitter dispute over the use of Kumho Tire‘s brand, the Chinese company submitted documents in early August for approval from the Korean government in what appeared to be a final step to complete the acquisition.

However, Doublestar has demanded the creditors cut the price by 16 percent to 800 billion won, adding a new twist to the Chinese firm’s bid to acquire Kumho Tire.

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