Creditors to sell $893 mln stake in S.Korea's Kumho Tire

Kumho Tire

20/09/2016 11:31

SEOUL, Sept 20 (Reuters) - Creditors of Kumho Tire Co 
 073240.KS  have started the process of selling a stake in the 
South Korean tyremaker, a spokesman for its lead creditor said 
on Tuesday, estimated by analysts to be worth around 1 trillion 
won ($893.2 million).  
    Creditor banks have put up a 42 percent stake in Kumho Tire, 
the world's 12th-biggest tyremaker and South Korea's second 
biggest, a Korea Development Bank (KDB) spokesman said, which 
was worth about 743 billion won as of Tuesday's close.    
    Kumho Tire has production bases in South Korea, China, the 
United States and Vietnam, and counts Hyundai Motor  005380.KS , 
Kia Motors  000270.KS , Chrysler, part of Fiat Chrysler 
 FCHA.MI , and BMW  BMWG.DE  among its customers.  
    The KDB spokesman said creditors tentatively expect initial 
letters of interest around November and main bids around 
January, but the actual schedule will depend on the progress of 
the sale.     
    They have appointed Credit Suisse  CSGN.VX  to manage the 
deal. 
    The chairman of South Korea's Kumho Asiana Group, Park 
Sam-koo, who also controls Asiana Airlines Inc  020560.KS , has 
the right of first refusal on the deal once bids are in, another 
KDB spokesman said. 
    Park is a member of the founding family of Kumho Asiana 
Group, which developed from its origins as a taxi firm into one 
of country's largest conglomerates, encompassing aviation, 
chemicals and industrials. 
    But an over-ambitious acquisition strategy before the global 
financial crisis left the conglomerate saddled with debt, 
leading to Kumho Tire being put under a creditor-led debt 
restructuring in late 2009. 
    ($1 = 1,119.5900 won) 
 
 (Reporting by Hyunjoo Jin and Joyce Lee; Editing by Jacqueline 
Wong) 
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters 
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net)) 
 
Keywords: KUMHO TIRE SALE/