Kumho Asiana Group chairman’s long-awaited dream to bring back his business empire under his control is likely to be realized, with his reacquisition of Kumho Industrial, the de facto holding firm of the group, getting close. 



Creditors of Kumho Industrial reportedly agreed last week to sell their majority stake in the company to chairman Park Sam-koo for 723 billion won ($622.57 million), 18.1 billion won higher than his earlier offer price.

“As creditors haven’t found any other buyer, they will likely wrap up the deal with Park as early as the end of the year,” a source familiar with the matter said.

It was a major step in the months-long negotiation as the price gap between the two parties was high ― as much as 400 billion won.

Park needs to inform the creditors whether he wants to exercise his stock buyback option for 50 percent and one share in Kumho Industrial at the suggested price by Sept. 30.

The chairman has been eager to buy back the builder because it controls the country’s second largest carrier Asiana Airlines and other key affiliates of the group.

If Park accepts the proposal, he will be able to have a hold on the group’s affiliates six years after he lost control of Kumho Industrial. The group’s holding company entered a workout program in 2010 after being hit by a liquidity crunch.

Kumho Asiana Group, founded in 1946 by his late father Park In-chon, sprawled businesses from airline to construction, and advanced into one of the country’s top 10 business groups in early 2000s. But Kumho Industrial’s acquisition sprees, including Daewoo Engineering & Construction and Korea Express, forced the group into liquidity problems following the global financial crisis in 2009.

Experts said the last challenge that Park faces is securing enough cash to pay 723 billion won for the buyout by the end of the year.

Park and his son Se-chang hold 5.04 percent and 4.86 percent stake in Kumho Industrial, respectively, worth some 69 billion won in market value.

His recent purchase of the entire stake in Kumho Buslines for 415 billion won in May also led to doubts whether he can fund the multibillion-won deal.

“There won’t be a problem to finance the takeover as Park has been contacting financial investors on the matter for a long time,” a Kumho Asiana Group official said.

Kumho Tire, which graduated from a creditor-managed workout program in 2014, is another affiliate that Park has been eyeing to buy back again to reclaim control of the group.

Currently, the Korea Development Bank and other creditors hold a 42.1 percent stake in the Korea’s second-largest tire maker and plan to hold an open bid to sell it next year.

By Park Han-na (hnpark@heraldcorp.com)