Kumho Asiana Group Chairman Park Sam-koo acquired a stake in Kumho Holdings, the holding company of the business group, to strengthen the reins over the company, business sources said.
Electronic filings submitted to the Financial Supervisory Service showed that Chairman Park acquired a combined 40,400 shares of Kimho Holdings for 4.201 billion won. His additional acquisition of Kumho Holdings shares brings his total stake in the holding company from 26.7 percent to 28.1 percent.
His two family members each took over 4,300 Kumho Holdings shares worth 447 million won and 5,300 Kumho Holdings shares worth 551 million won.
The acquisitions raise their stake in the holding company to 2.9 percent and 1.6 percent, respectively. The latest share purchases raise Chairman Park and his friendly shareholders’ holdings in the holding company to 62.7 percent.
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A view of Kumho Tire’s plant in Gwangju. (Photos: Kumho Asiana Business Group)
Kumho Asiana Chmn. Park Rules out Possibility of Reacquiring Kumho Tire
Kumho Asiana Business Group Chairman Park Sam-koo said his group will be rebuilt with a focus on mainstay businesses construction (Kumho Industrial), transportation (Kumho Express) and aviation (Asiana Airlines). He made it clear that his group has no intention to reacquire Kumho Tire.
Chairman Park told a news conference at the group’s building in Gwanghwamun, downtown Seoul, on Nov. 28, “With the recent merging of Kumho Express and Kumho Holdings, our group’s stable corporate governance has been complemented.”
He revealed his willingness to devote himself to rebuilding the group with a business portfolio consisting of construction, transportation and aviation businesses.
Kumho Asiana Group merged Kumho Holdings and Kumho Express to shore up the profitability and financial soundness of the holding company on Nov. 27. Kumho Express is the nation’s No. 1 and most lucrative express bus company.
The company chalked up 401 billion won in sales and 47.9 billion won in operating profit in 2016. On the other hand, Kumho Holdings logged 27.9 billion in net losses last year and had short-term borrowings worth 241.2 billion won.
“The newly merged company of Kumho Holdings and Kumho Express is forecast to see its sales and operating profit improve to 600 billion won and 80 billion won, respectively,” a company official said. The new company is expected to see its fixed costs, including financial charges, now standing at 20 billion won annually, drop to between 40 billion won and 50 billion won, allowing it to repay more borrowings, said the official, adding that its debt ratio will likely decline from 520 percent to a range of 300 percent.
Kumho Asiana Group, which has cross-holdings involving Kumho Holdings, Kumho Industrial, and Asiana Airlines, is expected to have a stronger corporate governance. Kumho Asiana Group Chairman Park with a 26.7 percent share, Kumho Asiana Group President Park Se-chang with a 19.9 percent stake and other relatives and acquaintances own a combined 65.1 percent stake in Kumho Holdings, which also has a 46.1 percent share in Kumho Industrial. Kumho Industrial also owns a 33.5 percent stake in Asiana Airlines.
Questioned about the group’s attempt to reacquire Kumho Tire anew, Chairman Park said his group is now not interested in the issue and he ruled out the possibility of reacquiring the tire maker, saying that he expressed hope it will be acquired by a better company than Kumho Asiana Group.
It means the group has officially parted ways with Kumho Tire, the last company Chairman Park once badly wanted to reacquire as part of his scheme to rebuild the group. Concerning the trademark rights of Kumho Tire, Chairman Park said he would collaborate with the tire maker within legally allowable boundaries.
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