Chairman Park Sam-koo of Kumho Asiana Group has secured financial investors to buy back Kumho Tire Co., the group‘s tire maker, taking him a step closer to group reconstruction, a group official said Thursday.

“A number of financial investors have promised the funds we need to reacquire Kumho Tire,“ said a group spokesperson.

Double Star, China’s state-run tire maker, was selected as the preferred bidder to acquire 42.01 percent shares of the local tire maker up for sale last month.

It is said to have offered creditors between 900 billion won ($787 million) and 1 trillion won for the shares and management rights of Kumho Tire, South Korea‘s second biggest and world’s No. 14 tire manufacturer by sale.

With the nine creditors, Double Star is expected to sign the stock purchase agreement on Friday. Park will be informed on details after the signing.

Park has a month to decide whether to practice the preemptive right and offer a higher bid than the preferential bidder.

For the time being, Park is said to be contacting potential strategic investors in order to recover the tire firm’s global competitiveness, according to industry sources.

Financial investors refer to private equity firms and hedge funds aimed at realizing a return on their investment, while strategic investors often refer to related companies that seek long term value as a shareholder.

Kumho Asiana Group has not yet revealed details on financial investors that will provide capital to Park’s special purpose company, which he will own 100 percent shares of.

According to local reports, a slew of individuals and companies have surfaced as potential financial investors that will help Park restore the group, such as local bank NH Nonghyup Bank, Chinese state-run China National Chemical Corporation, Kumho Electric Chairman Park Myung-koo, who is Park Sam-koo’s cousin, and Daesang Group Chairman Lim Chang-wook, Park’s brother-in-law.

If Park decides to practice his right, he is required to submit a financing plan and contract fee within 45 days.

The final winning bidder of Kumho Tire should be announced by late March at the latest.

Kumho Tire’s value dropped 4.1 percent on the Korean bourse compared to Wednesday‘s close and traded at 7,969 won per share as of 1:50 p.m.

By Kim Bo-gyung (lisakim425@heralcorp.com)