Reports: Doublestar selected as Kumho buyer Comments
China's Qingdao Doublestar Industrial Co. Ltd. has been selected by Kumho Tire Co. Ltd. creditors as the preferred bidder to acquire a 42-percent stake in the South Korean tire maker, according to multiple Asian news reports.
The Chinese tire maker offered around $850 million, the reports said, outbidding other firms identified as Shanghai Aerospace Industry Co. (SAIC), Jiangsu GPRO Group Co. of China and India's Apollo Tyres Ltd.The share being sold is held by a consortium of banks, including Credit Suisse and Korea Development Bank. The consortium acquired the stake in 2009 when parent Kumho Asiana Group was dealing with serious credit issues.Qingdao Doublestar is considered to be among the world's 35 largest tire makers, with 2015 sales of $740 million, according to Tire Business' annual Top 75 ranking. It operates two plants in China — in Qingdao, Shandong Province, and Shiyan, Hubei province — boasting an annual capacity of 15 million units.
It's understood, however, that Kumho Asiana Group Chairman Park Sam-koo has a right of refusal to match the bid the consortium deems the best.
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