Sorting out details keep Kumho sale on hold
Kumho Industrial Co., the parent of Kumho Tire U.S.A. Inc., is still negotiating with an investment group led by JP Morgan Chase and the Carlyle Group.
Kumho's asking price is approximately $1.5 billion for 80% of the company. "Due diligence is ongoing," says Kyu S. Cho, president of Kumho Tire U.S.A. "We expect this to be finalized in August, at the latest September."
As part of the proposed agreement, a buy-back option is included, added Cho. Reportedly, the option can be exercised within three to five years. Another condition of the sale will be to keep current management.
When the possible sale was announced last November, Kumho officials were optimistic the deal might be completed during the second quarter of 2002.