Doublestar officially calls off acquisition of Kumho
An industry insider disclosed Sept. 13 that Qingdao Doublestar called off the acquisition of Kumho Tire.
Qingdao Doublestar and Korea Development Bank inked in Mar. 2017 an equity transaction agreement, expecting to purchase a 42.01% stake in Kumho Tire for 955 billion won (about 5.8 billion yuan).
However, relevant parties hadn’t reach an agreement in the acquisition, in particular the right of using the KUMHO brand.
Kumho Industrial Co., Ltd. of Kumho Asiana Group owns the trademark of KUMHO.
Moreover, the price reduction proposal made by Qingdao Doublestar was also rejected by the creditors’ group.
Qingdao Doublestar suggested reducing the acquisition price from 955 billion won to 800 billion won.
Yonhap News Agency reported Sept. 12 that Doublestar has officially sent legal document and agreed to call off the business.
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