Report: Three Chinese firms bidding for Kumho

Seoul - Three Chinese firms Shanghai Aerospace Industry Co. (SAIC), Jiangsu GPRO Group Co. and Qingdao Doublestar Tire Industrial Co. have joined the final auction to acquire a 42.01% stake in Kumho Tire, according to a 13 Jan report by Pulse News.

Citing sources from the investment banking industry, Linglong Tire Co. and India’s Apollo Tyres submitted letters of intent did not see through the race.

Kumho Asiana Group Chairman Park Sam-koo, however, can exercise a right to buy back the stake at the highest bid price.

The creditors, said Pulse News, are planning to select their preferred bidder “around early next week and sign sales and purchase agreement (SPA) immediately.”

Then, it added, they will notify the final price and terms of the sales deal to Park.

According to the report, the final decision, in any case, is expected to be made by mid-February.