SEOUL, South Korea (Dec. 5, 2002) — Kumho Industrial Co. Ltd. is back to square one regarding its Kumho Tire unit after negotiations with an investors´ consortium involving JP Morgan Chase & Co. and Carlyle Group broke down, reportedly over the sale price.
The companies had signed a memorandum of understanding in February and had expected to close the deal in November. Kumho reportedly had sought up to $1.5 billion for an 80-percent ownership stake in the tire business.
Korean media reported the first week of December that the South Korean military pension fund had approached Kumho about buying into the company.
Separately, Kumho Industrial reported net earnings of $21.8 million for the nine months ended June 30 on sales of $1.5 billion. The profit contrasts with a loss of more than $57 million a year earlier.