5 Mar 2018
Such stake will be acquired through €510 million (4 billion yuan) private placement to Doublestar and three Chinese state-owned companies, Qingdao Conson Development (Group), Qingdao City Construction Investment (Group) and Qingdao Port International.
The transaction, pending relevant approval, is expected to close by the end of September according to Doublestar.
KDB, the South Korean state-owned policy bank, is part of a consortium that currently owns a 42% stake in Kumho, and the consortium’s ownership will drop to 23% after the placement.
In late 2016 Doublestar agreed buy KDB’s stake in Kumho before disagreements over trademark rights and Kumho’s profitability eventually lead to cancelation of the deal.
The new price is 30% lower than the old price, said Doublestar.
Kumho reported an operating loss of $39.6 million for the nine months ended Sept. 30, 2017, on sales of $1.66 billion. Full-year financials have not been released.
The $500-million relocation and upgrading of Kumho’s plant in Nanjing, Jiangsu was completed in 2017.
Doublestar was No. 23 on the ERJ/Tire Business 2017 Top 75 tire makers' ranking, with 2016 sales of $1.06 billion.
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