Cooper Tire & Rubber Co. has exercised a put option that will allow it to unload its 10.7% stake in Kumho Tire Co. Inc.
Cooper will collect $107 million during the third quarter due to the action, says Cooper Director of Investor Relations Curtis Schneekloth. The amount "will be added to our current cash position," he recently told moderntiredealer.com.
This past March, moderntiredealer.com reported that Kumho had started its search for investors to purchase the 10.7% stake. "We met with Kumho earlier this year and discussed a proposal to exercise our put option," said a Cooper spokesperson at the time.
In early 2005, Cooper reached an agreement to acquire nearly 11% of Kumho's common equity.
Cooper is the ninth largest tiremaker in terms of global sales, according to MTD research; Kumho is the 10th largest.
