Posted September. 29, 2017 07:56,
Updated September. 29, 2017 08:50
Kumho Holdings, the holding company of Kumho Asiana Group, is buying back Kumho Buslines. The two companies are planning to finalize the merger procedure by the end of November this year.
“Kumho Holdings has signed a contract to merge Kumho Buslines,” Kumho Asiana Group said on Thursday. “This is to improve profitability and financial soundness, not to mention building a stable corporate governance system.”
Kumho Buslines, No. 1 express bus company in South Korea, reported approximately 401 billion won and 47.9 billion won of sales and operating profit, respectively, last year. The bus company is known as the parent company of Kumho Asiana Group.
The conglomerate sold Kumho Buslines in 2011 as part of restructuring during a liquidity crunch. Kumho Asiana Group Chairman Park Sam-koo acquired the company in 2015, but the group had to resell the company for 390 billion won to come up with undertaking fund for Kumho Industrial. In June 2017, Kumho Holdings finally bought back 100 percent of the shares of the bus company, which was previously owned by private equity fund Consus PEF, for 437.5 billion won.