Doublestar Complete 45% Purchase of Kumho
A few weeks ago, Doublestar and the Korea Development Bank (KDB) held the trade closing ceremony in Seoul, South Korea for their purchase of a 45% stake in Kumho Tire. The transaction was completed for approximately RMB 3.9 billion, with Doublestar officially becoming its controlling shareholder. Creditors such as KDB will continue to hold 23% of the shares, maintaining the position as the second largest shareholder.
With a history of 58 years, Kumho Tire is the second largest tire company in Korea with 8 factories and has 5 R&D centres around the world. In the past the company’s market share in China once exceeded 20%, leading not all foreign brands, but all brands in the country. Additionally, Kumho also benefit from a reputation for high quality in European and American markets. During the acquisition process, Doublestar, together with Qingdao Conson Development and Qingdao City Investment, jointly invested about RMB 3.9 billion to purchase 45% stake of Kumho Tire, turning out to be the controlling shareholder.
"The advantage of Kumho Tire is PCR tyres, and Doublestar is TBR tyres. The coordination and integration of the two is not simply 1+1=2, undoubtedly meaning that it will have a multiplying affect", according to Mr. Chai Yongsen.
He continued, "The two sides should utilize our respective advantages and strive to be one of the world's greatest tyre groups from the technology, products, manufacturing, services and models that lead the global tyre future."