Creditors of Kumho Industrial are planning to sell its controlling stake in the company to Kumho Asiana Group chairman Park Sam-koo after bidding for the former de facto holding firm of the group failed in late April, sources said Friday.
“We are leaning toward a private contract with Park as many said that it would take a lot of time and money for rebidding,” said a creditor bank official.
The decision follows a meeting Thursday with Kumho Industrial’s main creditor Korea Development Bank and others to discuss the next phase of bidding to sell a 57.5 percent stake in the company, which attained business normalization.
According to sources, the creditors also showed concern that the renewed bidding would not guarantee a higher price than the initial bid and possibly weaken the company’s leverage when it has talks with Park.
On April 28, 52 creditors of Kumho Industrial rejected a final price of 600.7 billion won ($561 million) by sole bidder Hoban Construction, saying it was undervalued.
Industry watchers have estimated the cost of the acquisition will soar to 1 trillion won as the deal would give the winner control of Asiana Airlines, the nation’s second-largest air carrier and other major affiliates.
“The willingness to acquire the company has not been changed,” Park said during an interview with local media.
Park has been seeking to piece together his former business group with the purchase of Kumho Industrial, which entered a workout program due to a liquidity crisis in 2009.
“We are keeping an eye on the market situation and waiting for the creditors’ official notification on the negotiation measures,” a Kumho Asiana official said.
Creditors are expected to vote on the private deal with Park and notify Korea Development Bank on May 18.
If creditors agree with the deal, they will evaluate Kumho Industrial’s value for a month with two accounting firms. If they are voted down, bidding will start again.
By Park Han-na (hnpark@heraldcorp.com)
