Qingdao Doublestar Group has concluded its acquisition of a 45-percent ownership stake in South Korea's Kumho Tire Co. Inc., closing an 18-month chapter of uncertainty in Kumho's 58-year history.
Qingdao Doublestar Group and its Korean subsidiary Xingwei Korea Co. Ltd. signed a contract in April with Korea Development Bank (KDB) to acquire KDB's stake in Kumho Tire through a $607 million private placement.
By doing so, Doublestar becomes Kumho Tire's controlling shareholder, while KDB and other Kumho creditors will remain the second largest shareholder with a 23-percent stake. The remaining 22 percent of Kumho Tire's shares are in other private hands.
Doublestar was the No. 24-ranked global tire maker in 2017 with fiscal 2016 sales of $1.06 billion, while Kumho was No. 14 with sales of $2.52 billion, according to Tire Business' "Global Tire Report."
With a history of 58 years, Kumho Tire is the second largest tire company in South Korea. It has eight factories and five research and development centers around the world.