Korea's largest fixed-line telephone company KT will likely become the new owner of the nation's leading car rental company. Kumho Asiana Group and Korea Development Bank said Monday that they have chosen a consortium of KT and private equity firm MBK Partners as the preferred bidder for Kumho Rent-A-Car.
There were five bidders seeking to take over the rental company, which has 50,000 vehicles and is 100 percent owned by Korea Express, an affiliate of Kumho Asiana.
The two sides will negotiate details of the transaction before signing a contract by year's end, KDB said. The exact amount of the winning bid has not been revealed, but market insiders believe the deal is valued at some W300 billion (US$1=W1,163).
Not only does KT have sufficient financial strength to take over Kumho Rent-A-Car, but it will be able to create synergy effects through its subsidiary car rental company, KT Rental, a Kumho Asiana spokesman said.