• Twitter
  • Facebook
  • Instagram
  • Subscribe
  • Free Newsletter
  • My Account
Tyrepress
  • 0Shopping Cart
  • NewsNews
    • Latest News
    • Company News
    • UK News
    • Product News
    • International News
    • Retreading
    • Career Tracks
    • Motorsport
    • Video
    • Tyrepress Videos
  • Data
    • Leading Tyre Manufacturers
    • Leading Retailers (UK)
    • Social Media Ranking
    • Online Branding
    • Brand Finance rankings
    • Blue Light Fleet Analysis
    • Astutus Research analysis
    • Beyond Covid-19 Tire Market Forecasts
  • Features
    • Goodyear to buy Cooper – special supplement
    • TPMS and Sensor Technology 2021
    • Tyre Industry Conference 2020
    • Online Tyre Business 2020
    • Kick-starting your business webinar May 2020
  • Business Directory
    • Browse Entries
    • List Your Company on the Business Directory
  • Jobs
    • Situations vacant
    • Career Tracks
  • Classifieds
  • Magazine
    • Latest Issue
    • Read Tyres & Accessories Magazine online
    • Tyres & Accessories Magazine Archive
  • Shop
    • Subscription Shop
    • Report Shop
    • Directory Shop
  • About
    • Company Profile
    • Media Information
    • Frequently Asked Questions (FAQs)
    • Legal
    • Contact Us
  • Search
  • Menu
You are here: Home1 / News2 / Company News3 / Acceptance of Daewoo Sale to Aid Kumho Restructuring Plan

Acceptance of Daewoo Sale to Aid Kumho Restructuring Plan

Date: 11th March 2010 Author: Tyrepress Editors Comments: 0

The Kumho Asiana Group is one step closer to untying its financial knots following the financial investors of Daewoo Engineering and Construction accepted the terms for selling their share in the company. This leaves the path clear for Kumho Asiana to continue its restructuring plans a step further without losing Kumho Industrial to court receivership.

Kumho acquired a 72.1 per cent stake in Daewoo Engineering for 6.4 trillion won in 2006, with more than half the funds coming from a group of financial investors, including banks and private equity funds. At the time of acquisition, Kumho Asiana promised the investors that it would buy back a 39 percent stake in Daewoo Engineering if the builder’s stock prices fell below 31,500 won by December 15, 2009. As The Korea Times comments, this proved to be an ill-advised gamble as Daewoo Engineering’s shares plummeted below 15,000 won in the aftermath of the global economic downturn.

In December, the Korea Development Bank (KDB) proposed that a private equity fund, led by the state lender, would buy 50 per cent plus one share in Daewoo Engineering for 18,000 won per share. With the 18 financial investors now agreeing to back the plan and sell their Daewoo Engineering stakes to a KDB-led private equity fund at that price, the chance exists for Kumho Asiana to claw its way back.

The KDB and other creditors are expecting to finalise a workout programme for Kumho Industrial by the end of the month, although the bank admits that the process could possibly take longer. A workout for Kumho Tires could prove more difficult, The Korea Times comments, with the company’s unionists voting to approve a strike to resist the restructuring plan put forward by the KDB.

Related news:

  1. Continental Completes ‘First Step’ of Refinancing Package
  2. Restructuring at Kumho Tire Likely
  3. “Great Interest” Shown in Conti Capital Increase
  4. Higher sales, profits in revised Bridgestone projections
Comments
Comments closed
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on LinkedIn
  • Share on Reddit
  • Per E-Mail teilen

Related Tags

acquisition, Company News, December, financials, Kumho, prices, shares

Advert Location 28

© 2020 - Tyrepress
  • Twitter
  • Facebook
  • Instagram
  • WhatTyre
  • Reifenpresse
  • PneusNews
Major Manufacturers Testing Ekoprena Brityrex Increases Aftermarket Appeal
Scroll to top