The chief of Kumho Asiana Group said Wednesday the airline-to-construction conglomerate will consider asset sales in China to help turn around its tiremaking affiliate after the deal to sell it collapsed.
In March, China's Qingdao Doublestar signed a 955 billion-won ($844 million) contract with the creditors led by the state-run Korea Development Bank to buy a 42.01-percent stake in South Korea's No. 2 tiremaker. The deal fell through Monday when the creditors rejected Doublestar's demand to cut the purchase price, citing deteriorating earnings.
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(Yonhap) |
Doublestar demanded the creditors cut the price by 16 percent to 800 billion won, the KDB said.
The creditors called on Kumho Asiana to immediately come up with a self-rescue plan for the tire unit.
"We are reviewing a variety of options, including the sale of (Kumho Tire's) assets in China, to put the financially troubled tire unit back on track," Kumho Asiana Chairman Park Sam-koo told reporters in the lobby of group headquarters in Seoul, according to a company spokesman. (Yonhap)
