Kumho Asiana Group Chairman Park Sam-koo appears to be continuing efforts to reacquire Kumho Tire as creditors prepare to sell their 42.01% stake in the tiremaker, Korean media reported.
According to media reports, Park visited Kumho’s facility in Gwangju, South Jeolla Province, recently where he met with labor union representatives and workers. The visit was Park’s first visit in more than a year, with his last visit occurring in December 2014.
The visit was most likely part of Park’s plan to regain control of Kumho by building trust with employees and increasing personal contacts, according to local media. It was further reported that the meetings with the labor union seemed positive.
Earlier this summer, Park attempted to rebuy the tire company by setting up a special purpose company, but his attempt was stopped by the creditors, who said “the indirect way of acquisition may bring down the value of Kumho Tire.”
It has been rumored that other parties interested in acquiring Kumho Tire include Bridgestone Corp., Continental AG, Michelin and ChemChina – although nothing has been confirmed or denied at this time.
Park holds right of first refusal, which could allow him to repurchase management control under the same terms as the highest bidder. He will not be given the same support he had when reacquiring Kumho Industrial.
Last year, Park bought back Kumho Industrial and this month, merged Kumho Terminal and Kumho & Co.
The holding company Kumho & Co. Inc. was inaugurated on Aug. 12 as a result of the merger and Park’s eldest son and president of Kumho Asiana Group Park Se-chang was appointed as a registered board member. According to media reports, the move is an effort to “solidify the group’s management succession to the third generation of the owner.”
If Park gives up his right of first refusal, it is possible he could still compete with other companies for Kumho Tire.
