Doublestar completes Kumho Tire acquisition
Doublestar has successfully purchased a 45 percent stake in Kumho Tire for around $584 million and officially becomes the controlling shareholder. Korea Development Bank (KDB) will continue to own 23 percent of the shares, and will be the second largest shareholder.
Doublestar made the announcement in September 2016. On January 18, 2017, Doublestar won the bid, but Doublestar and KDB later terminated the agreement. On March 2, 2018, KDB revealed it would re-introduce Doublestar to be the largest shareholder in the form of capital increase. However, Doublestar specified union consent as a precondition. The union gave its consent and the relevant agreement was signed. In total, it took more than 660 days to complete the transaction.
“We are at a new starting point and hope to go from being a leader in tyre development to one of the world’s greatest tyre companies. Kumho is an expert in PCR tyres, Doublestar in TBR tyres. We are committed to ensuring that the cooperation between Doublestar and Kumho Tyre is a model of friendship between China and South Korea, of China-ROK economic and trade cooperation, and of friendly relations between employers and employees,” said Chai Yongsen, chairman of Doublestar Group.
Doublestar says it will seize this opportunity to become a global player, especially in the Chinese market.