Report: China’s SAIC strong Kumho bidder

Seoul – Shanghai Aerospace Industry Co. (SAIC) is the strongestt contenders to bid for Kumho Tire, according to various news reports.

Business news website Pulse Today, citing “multiple sources from the investment bank industry”, that the Chinese bidder had placed the highest price in the preliminary bid that took place in November to acquire a controlling 42% of the second Korean tire maker.

SAIC is a unit under China’s state-owned China Aerospace Science and Technology Corporation (CASC) which specialises in aerospace and automotive industry.

According to Korea Herald, five companies have been shortlisted for the sale including India’s Apollo, China’s Qingdao Doublestar,  Jiangsu GPRO Group, and Linglong Tire Co.

The final round of bidding is expected to take place in January next year, the report added.

As reported by ERJ, 10 parties are said to have expressed interest in buying the controlling stake in Kumho, whose creditors began a sell-off process for the tire-maker with a public notice of sale on 20 Sept.

The creditor companies aim to pick a “prime bidder” within the first half of 2017.

According to a report by Korea Herald in September, nine creditors hold a combined 42.1% of Kumho Tire, with Woori Bank and the Korea Development Bank owning 14% and 13.5%, respectively.