Cooper to Buy 11 per cent of Kumho Tire

Cooper Tire & Rubber has announced that it has agreed to acquire approximately 11 per cent of the common equity of Kumho Tire. Cooper reports that the acquisition is in connection with a planned initial public offering on the London and Korean stock exchanges. The deal, which is expected to close in the first quarter of 2005, remains subject to a number of government and regulatory approvals.

The announcement follows Cooper’s sale of its automotive unit for $1.165 billion and redistributes some of the raised funds. Thomas A Dattilo, Cooper’s chairman, president and CEO, said: “This is a wise investment for us as we begin the process of repositioning the company after the sale of Cooper-Standard Automotive. We believe it is important for Cooper to form strategic relationships with other strong players in the global tire industry to realize a good return for shareholders and continue our planned growth in products, technology and market share.” The cooper chairman confirmed that the companies will continue to operate independently, but also as partners in many areas “for the future benefit of all.”

Kumho Tire is the world’s 11th largest tyre manufacturer. Cooper is positioned eighth in the world rankings.