Hoban Construction has emerged as sole bidder for Kumho Industrial, the holding company of Kumho Asiana Group and parent company of Kumho Tire, The Korean Times reported.
“Hoban was the only entity that submitted a bid for Kumho Industrial,” a Korea Development Bank (KDB) spokesman said. “We will announce later whether creditors select Hoban as a preferred bidder or not, and how the sales will proceed from here.”
KDB and other creditors are in charge of the sale of Kumho Industrial. In February, the banks picked Hoban Construction, MBK Partners and three other private equity firms as preliminary bidders. KDB and other creditors own roughly a 57.5% stake in Kumho Industrial valued at $463 million, the Korean Times said.
Under a previous deal, investors promised Kumho Asiana Group Chairman Park Sam-koo first option to purchase the shares at the highest bidding price. If he refuses, the banks can then sell their shares to the highest bidder. Park Sam-koo and son Se-chang have a combined 9.14% stake in Kumho Industrial.
KDB did not disclose Hoban’s bid price, the Korean Times reported.
Hoban Construction currently owns 4.95% of Kumho Industrial. The company’s chairman Kim Sang-yoel has reportedly said on several occasions that he has enough cash to acquire Kumho Industrial and that he’s willing to pay as much as 1 trillion won.
