Kumho Tire: Can Park afford to match Qingdao Doublestar bid?
Although Park Sam-koo is said to have arranged sufficient funds to buy back a share in Kumho Tire from its creditors, some still doubt the transaction will go ahead. The Investor, the online business news service run by The Korea Herald, comments that many observers question whether Park will be able to pay the KRW 100 billion (£70.5 million) down payment for the deal.
According to media reports, preferred bidder Qingdao Doublestar is in “the final stage of talks before signing the stock purchase agreement with the creditors.” The agreement is expected to be signed by the end of this week.
Should Park wish to exercise his right of first refusal on the shareholding, he must pay ten per cent of its total value up front, an estimated KRW 100 billion. While he claims investors have guaranteed the necessary funds, Park has yet to disclose who exactly will supply the money.