A preferred bidder has been chosen for Kumho Rent-A-Car Co., the official Hertz licensee for Korea, according to the Wall Street Journal.
According to a regulatory filing, a partnership of South Korea’s largest fixed-line telephone company, KT Corp., and private-equity firm MBK Partners has been picked.
No details were given about the price. Kumho Asiana said in November that five companies had made offers to acquire Kumho Rent-A-Car.
Kumho Rent-A-Car, founded in 1990, operates 160 branches around the country and more than 50,000 vehicles in its fleet. Kumho Rent-A-Car is wholly owned by Korea Express Co., a Kumho Asiana affiliate and South Korea’s largest logistics firm by revenue. State-run Korea Development Bank, the main creditor of Kumho Asiana Group, has been forcing the conglomerate to sell assets because of liquidity problems. Besides Kumho Rent-A-Car, Kumho Asiana is also selling Daewoo Engineering & Construction Co. and Kumho Life Insurance Co. for 400 billion won ($340 million). Kumho Asiana also has interests in airlines, construction and logistics.