Seoul – The process to sell a majority 42.01% share of Kumho Tire to Qingdao Doublestart Tyre has had a further setback with the Chinese company demanding a new buyout term, according to the Korean business newspaper Pulse News.
In an 18-Aug report, the Korean newspaper said that with the new demand, former owner and chairman of Kumho Asiana Group Park Sam-koo would be given a new chance to rebid for the South Korean tire manufacturing company.
Following a series of disputes over trademark rights between Park and Kumho Tire creditors, led by Korean Development Bank (KDB), the sale to Doublestar was scheduled to be completed this month.
However, according to Pulse News, Doublestar has now asked the creditors to cut the price.
Doublestar inked an agreement on 13 March to buy a controlling stake in Kumho for 955 billion won (€778 million). According to the Korean news agency Yonhap, Doublestar is now demanding the price tag to be reduced to 800 billion won.
The Chinese company has the right to call off the deal if operating profit of Kumho Tire falls more than 15% by the 23 Sept deadline for the deal to be sealed, according to Pulse News.