Doublestar buys into Kumho Tire

Qingdao Doublestar Group, one of the oldest rubber companies and a leading tire manufacturer in China, may acquire a 42.01 percent stake in South Korean tiremaker Kumho Tire Co Inc, according to a Doublestar statement on Monday.

Shenzhen-listed Doublestar would invest about 955 billion won ($830 million) in the equity purchase, and if the president of Kumho Tire didn't exercise the preemptive right within 30 days, Doublestar would become the largest shareholder in Kumho Tire.

Doublestar said its executives are currently in South Korea, and it is inconvenient to comment and talk further about the details.