Kumho creditors considering Daewoo share sale

Creditors of South Korea's Kumho Asiana Group, parent company of Kumho Tires, are said to be considering selling a 1.46 trillion won (₤818.8 million) stake in Daewoo Engineering & Construction Co Ltd held by the group's affiliates via a block trade. Group company Kumho Industrial Ltd holds 14.6 per cent of Daewoo Engineering & Construction and other units own the remainder, and the sale of a 24.7 per cent share in the contractor, as reported by Reuters, would join a number of other restructuring efforts aimed at aiding the cash-strapped company.

Kumho Asiana purchased Daewoo in 2006, however the acquisitions the company made at this time later led to liquidity problems. Late last year it sold part of its share in Daewoo to a Korea Development Bank led private equity fund. Including its purchase of new shares worth US$875 million the fund holds a 51 per cent stake in Daewoo, making it the largest shareholder.