Forex Kumho Tire says to issue shares to China’s Doublestar worth $604 mln South Korea’s Kumho Tire said on Friday that it plans to issue new shares worth 646 billion won ($604.99 million) to Qingdao Doublestar Co Ltd as part of an agreed deal for the Chinese company to assume control over it.
Seoul – Kumho Tire’s labour union has voted in favour of a plan to sell a 42.01% majority share of the South Korean tire maker to China’s Doublestar Tyre, according to business news website, The Pulse.
The 2 April report said more than 2,700 unionised workers took part in the vote, of which 60.6% were in favour of the sale to the Chinese company.
Chinese investors led by Qingdao Doublestar told ERJ in March that they had reached an agreement with Kumho’s shareholder Korea Development Bank to…
SEOUL — Workers at troubled Kumho Tire have approved the company’s acquisition by Chinese peer Qingdao Doublestar after a standoff that went down to the wire, saving South Korea’s No. 2 tire maker from a likely bankruptcy.
The Kumho labor union voted Friday night in favor of the 646.3 billion won ($607 million) deal, which would give Doublestar a 45% stake in the company. Kumho’s creditors had set a deadline of Friday for labor to accept the plan, after which the deal would have been scrapped.
Shiyan, China – Qingdao Doublestar Co is to relocate its subsidiary Doublestar Dongfeng Tire in Shiyan, Hubei province and upgrade it into a smart factory.
The new plant, with planned annual capacity of 1.5 million unit truck and bus tires and 5 million unit passenger car tires, will be relocated to Zhangwan District Industrial Park in the same city. The new site has 300,000 square metre total area.
China’s Qingdao Doublestar Co. Ltd. has agreed to invest 646.3 billion won ($597.4 million USD) for a 45% stake in South Korea’s Kumho Tire Co. Inc, multiple news outlets reported at the beginning of March.
According to a statement filed with the Shenzhen stock exchange, China’s Qingdao Doublestar Co Ltd’s parent company will buy 129.3 million ordinary shares in Kumho Tire, becoming the controlling shareholder in the debt-ridden South Korean tire maker, Reuters reported.
ZHUMADIAN, China – China’s tire maker Doublestar broke ground on its smart plant for scrap rubber recycling in Zhumadian in December, the company said.