FINDLAY, Ohio (March 15, 2005) — Cooper Tire & Rubber Co. spent about $107 million in mid-February to acquire an approximate 11-percent share in South Korea's Kumho Tire Co. Inc., according to the company's recently filed 10K form.
Cooper bought its stake in Kumho through the Korean firm's initial public offering on the London Stock Exchange on Feb. 16. The value of Cooper's purchase had been estimated at $110 million at that time, based on the first day sale price range.
The acquired shares are subject to a “lock-up agreement” for three years, Cooper said, after which either Cooper or Kumho could call for the shares to be sold.
Regarding the purchase, Cooper said it will serve as a platform to explore synergies in various areas of shared interest. Further, Cooper said it believes it is important to form strategic relationships with other strong players in the global tire industry to realize a good return for shareholders and continue its planned growth in products, technology and market share.