Kumho Asiana to buy back Korea bus unit from IBK, Kstone

The KoFC IBK-Kstone Private Equity Fund bought the intercity bus services operator from Kumho Industrial in 2012 for KRW331 billion (then $291 million). They also picked up minority stakes in Seoul Express Bus Terminal and Daewoo Engineering & Construction - for KRW200 billion and KRW415.5 billion, respectively - as Kumho Asiana offloaded assets to pay down its debts.

According to Yonhap News Agency, Kumho Asiana had first right of refusal on the bus business when IBK and Kstone decided to exit. It went up for sale last year after a two-year lock-up on the investment expired. However, Kumho Buslines' 48.8% stkae in Kumho Resort has been excluded from the transaction.

Kumho Asian's problems date back to the highly-leveraged purchase of Daewoo Engineering & Construction by Kumho Industrial in 2006. Other assets that offloaded over the ensuing years included Kumho Rent-A-Car, which went to MBK Partners and Korea Telecom in 2010. Kumho Asiana - still majority owner of the country's second-largest airline - is now trying to rebuild.

The conglomerate is also chasing a 57.6% stake in Kumho Industrial which has been put up for sale by creditors following a five-year workout program. In 2010, they assumed control of the company through a KRW2.25 trillion debt-for-equity swap. Kumho Industrial owns 30.1% of Asiana Airlines. Several private equity firms are said to be in the hunt for the asset.

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• Topics
• Exits
• North Asia
• Industrials
• Exit
• Trade sale
• South Korea
• Transportation