By Liz White, ERJ staff
Findlay, Ohio-US tyre maker Cooper Tire & Rubber Co. is to acquire some 11 percent of the common equity of Korean-based tyre maker Kumho Tire.
Cooper Tire said 9 Jan that the acquisition is connected with an IPO (initial public offering) planned for Kumho, which will be listed on the Korean and London Stock Exchanges. The transaction is expected to close in the first quarter 2005. The agreement is subject to a number of government and regulatory approvals, Cooper added.
Cooper Tire, the eighth largest tyre maker globally, recently gained a cash fund with which to grow its tyre business, completing the sale of its Cooper Standard Automotive unit for $1165 million.
"This is a wise investment for us as we begin the process of repositioning the company after the sale of Cooper-Standard Automotive,â€ said Thomas Dattilo, Cooper chairman, president and chief executive officer, in the firm's statement.
â€œWe believe it is important for Cooper to form strategic relationships with other strong players in the global tyre industry to realise a good return for shareholders and continue our planned growth in products, technology and market share," Dattilo added.