As creditors of Kumho Tire are considering selling stakes in the world‘s 12th-largest tire maker by sales, global and local firms seeking to expand their business across Asia may eagerly look forward to the deal hitting the market.

The Korea Development Bank and other creditors of Kumho Tire, which hold a combined 42.1 percent stake in the tire maker, have begun a feasibility study with an advisory group comprised of Credit Suisse, Deloitte Anjin and Lee & Ko, according to sources Tuesday.

For the next three to four months, the panel will work on the method of stake disposal and analyze whether now is the right time to sell the firm.

At Kumho‘s current stock price, the transaction would be worth 640 billion won ($539 million), and market watchers expect the deal could go over 1 trillion won.

Korea’s No. 2 tire producer may be a tempting acquisition target for global firms eyeing the expansion of their footing in China, as Kumho has a sizable production base in the world‘s largest auto market --the Tianjin Plant, the Gaoxin Plant and the Changchun Plant. It also has one factory in Vietnam.

“Given that the Chinese government has stopped approving new plants in some cities in a bid to fight pollution, Kumho’s established factories are an attractive factor for potential buyers,” a source said.

In addition, the company plans to complete the construction of its U.S. plant in Macon, Georgia, where it plans to produce about 4 million tires per year, by the end of the first half of 2016.

While some private equity firms reportedly await news of a windfall from the likely 1 trillion won sale of the tire maker, industry insiders and media are closely watching any moves made by Park Sam-koo, chairman of Kumho Asiana Group.

His group’s affiliate Kumho Tire is one of the last puzzles that the chairman needs to solve to bring his business empire back under his control.

Market watchers expect that he will exercise the right of first refusal he has on the stake, which means Park could buy the company simply by matching the highest offer on the table. 

“Having the preemption right is already showing the chairman‘s willingness to buy back Kumho Tire,” an official at the group said.

However, as he spent a lot on the reacquisition of Kumho Industrial, the de facto holding firm of the group, earlier in the year, some have cast doubts as to whether he could fund the high-priced deal.

Meanwhile, a local media outlet reported Tuesday that creditors are leaning towards selling the tire maker to overseas firms, such as Chem China, rather than Park.

“The creditors are more interested in a cross-border deal. They think that if cash-rich foreign investors participate in the bid, they will get better returns,” an official at an investment bank said.

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