Kumho Tire Co., South Korea's second-biggest tiremaker by sales, said Friday that it has signed a deal with China's Qingdao Doublestar Co. to sell its controlling stake.
"Kumho Tire and its creditors concluded a contract on the purchase of new shares with Xingwei Korea Co. Ltd. (Doublestar)," the tiremaker said in a filing.
It said 129.3 million shares, or 45 percent, are subject to the contract, worth 646.3 billion won (US$604.6 million).
Xingwei Korea is a consortium led by Doublestar, a Chinese truck and bus tiremaker, aimed at taking over Kumho Tire.
Earlier, the Korea Development Bank, a state-run policy lender representing the creditors of Kumho Tire, agreed to hand over managerial control to the Chinese firm.
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