(Yicai Global) Sept. 14 -- China's Qingdao Doublestar Co. [SHE:000599] has retracted its KRW955-billion (USD847-million) offer for a 42-percent stake in South Korea's Kumho Tire Co. [KRX:073240] after weeks of debate with the latter's creditors dragged on for several weeks, Doublestar said in a statement on Sept. 13.
The leading Chinese tire maker invested CNY900 million (USD138 million) in December 2016 to set up the CNY10-billion Qingdao Xingwei Equity Investment Fund with several other local investment firms. The fund mainly invests in upstream and downstream sectors in the automotive and tire industry at home and abroad.
On March 13, 2017, the fund signed an agreement with Korea Development Bank, Kumho Tire's main creditor, to acquire a 42.01-percent stake in the South Korean tire maker with preconditions in place.
Doublestar will still look to invest in domestic and foreign firms and actively participate in industry consolidation opportunities to expand its global plans, the statement said.