FONTANA, Calif. (Nov. 7, 2001)—Kumho Industrial Co. is negotiating with several foreign investment banks about purchasing a major stake in its Kumho Tires business unit, based in South Korea.
A spokesman with Kumho Tires U.S.A. Inc., based in Fontana, confirmed that talks are ongoing and that a deal could be completed by the first quarter of next year or early in the second quarter. He would not identify the investment group or groups.
Should the transaction happen, Kumho Tires would receive a financial infusion, which would help make Kumho a stronger tire brand, the spokesman said. “I'm told the management will stay and the Kumho brand will stay,” he added.
Kumho Tires has done a good job over the past 10 years and is a “very profitable” operation, the spokesman said. “That's why the foreign investment companies are looking at Kumho,” he said.