Kumho Tire gets China bailout before deadline

In the biggest Chinese outbound M&A deal in Korea, Qingdao Doublestar agrees to buy 45% of the South Korean tyre maker for $597 million with the threat of bankruptcy looming.

Kumho Tire gets China bailout before deadline

China’s privately-held Qingdao Doublestar will invest W646 billion $597 million for a controlling stake in Kumho Tire, the Shenzhen-listed company announced on Monday, striking a cut-price deal to take control of the debt-laden South Korean tyre manufacturer after dropping its initial bid last year. 

The transaction, which will see Doublestar taking a 45% stake through a capital injection and looks set to be corporate China's biggest-ever Korean acquisition, puts an end to the prolonged...

FinanceAsia has updated its subscription model. Registered readers now have the opportunity to read five articles from our award-winning website for free. Please subscribe for unlimited access.

Print Edition

FinanceAsia Print Edition