April 27, 2024

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[THE INVESTOR] The chief of Kumho Asiana Group said on Sept. 6 the airline-to-construction conglomerate will consider asset sales in China to help turn around Kumho Tire after the deal to sell it collapsed.

In March, China’s Qingdao Doublestar signed a 955 billion-won (US$844 million) contract with the creditors led by the state-run Korea Development Bank to buy a 42.01-percent stake. The deal fell through when the creditors rejected Doublestar’s demand to cut the purchase price, citing deteriorating earnings.

 

Kumho Asiana Chairman Park Sam-koo.

Doublestar demanded the creditors cut the price by 16 percent to 800 billion won, the KDB said.

The creditors called on Kumho Asiana to immediately come up with a self-rescue plan for the tire unit.

“We are reviewing a variety of options, including the sale of (Kumho Tire’s) assets in China, to put the financially troubled tire unit back on track,” Kumho Asiana Chairman Park Sam-koo told reporters in the lobby of group headquarters in Seoul.

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