Seoul – Chinese tire maker Doublestar Tyre Co. has signed an agreement with Kumho Tire creditors for the purchase of a 42.01% majority stake in the South Korean tire company, according to local reports.
The 955 billion won (€778 million) deal was reportedly inked on 13 March and will also give Doublestar management rights.
According to Puls News, Doublestar has issued a press release promising to “respect independent operation and management” at the Korean company.
Chairman of Kumho Asiana Group Park Sam-koo will have 30 days to decide whether he will exercise his right of refusal and buy back the shares at a higher price.
In the meantime, Korean news agency Yonhap quoted officials from Kumho Asiana Group on 13 March as saying that Park should be allowed to form a consortium to buy back the shares.
"If the creditors do not allow (a consortium), we will not exercise the right to buy back (Kumho Tire)," Yoon Byong-chul, Kumho Asiana's chief financial officer, said in the agency report.