Kumho Asiana, Kumho Petrochemical complete split

Kumho Asiana Group, led by chairman Park Sam-koo, was set to complete on Wednesday its legal separation from Kumho Petrochemical Group headed by his brother Chan-koo.

Park Sam-koo and his son Se-chang began the block sale of all of their shares in Kumho Petrochemical worth 409 billion won Tuesday evening through Daewoo Securities and Nomura Securities, Kumho officials said. A discount rate of 6.95 percent was applied on Tuesday’s closing price of 165,500 won per share, making the sale price 154,000 won per share.

A 5.3 percent stake held by the senior Park, or 1.34 million shares, and a 5.15 percent stake (1.3 million shares) owned by his son, an executive at Kumho Tire, were sold off to around 100 institutional investors Wednesday morning.

Kumho Asiana Group, with Kumho Industrial, Asiana Airlines, Kumho Tire and others under its wing, will now be a separate conglomerate from Kumho Petrochemical Group, consisting of Kumho Petrochemical, Kumho Mitsui Chemicals and Kumho Polychem.

Chairman Park Sam-koo plans to use the money from the sale to increase paid-in capital of Kumho Industrial, the de facto holding company of Kumho Asiana Group, and Kumho Tire in an attempt to return as the major shareholder.

Park barely holds any shares in Kumho Industrial or Asiana Airlines due to a capital reduction when the group was under workout.

Park Chan-koo, chairman of Kumho Petrochemical, will now be the company’s largest shareholder controlling a 28.3 percent stake together with his son and nephew who both work at the petrochemical firm.

Kumho Petrochemical is considering dropping its case raised against the Fair Trade Commission which said the company was legally under Park Sam-koo’s control as he holds more than a three-percent stake.

The Park brothers have had a years-long feud over the management of Kumho affiliates.

By Kim So-hyun (sophie@heraldcorp.com)