Park Sam-koo, chairman of Kumho Asiana Group, is reportedly still working to buy back Kumho Tire after creditors approved China-based Doublestar Tyre Co. as the preferred bidder, the Nikkei Asian Review reports.
China-based Doublestar recently signed a deal with Kumho Tire creditors to acquire 42% shares of the tiremaker for $826 million. If Park does not match the highest bidder’s price and terms to reacquire Kumho within 30 days of being notified of the deal, the deal will be completed with Doublestar. The Korea Development Bank (KDB) said it plans to notify Park on Thursday.
According to the Nikkei Asian Review, Park is threatening sue KDB, in an effort to pressure KDB to allow him to bid for a controlling stake in Kumho Tire through a consortium.
“We cannot understand why KDB does not allow the consortium to bid without talking it over with us. So, we plan to take legal action,” the group said in a statement.
Media reports KDB has ignored the request to discuss the bid with other creditors, adding that KDB said that the buyback option is not the company’s, but it is Park’s, making little sense for him to bid through a consortium.