Korean Air and Asiana Airlines aircraft at local airports. (Yonhap)
Korean Air said plans to buy 1.5 trillion worth of new shares have been sold by Asiana, and buy bonds to be floated by smaller carriers, the company said in a regulatory filing.
Korean Air, currently the world’s 18th largest, will acquire a 30.77 percent stake in Asiana from creditors of the Korea Development Bank (KDB)-led loan carrier.
The state lender planned to win 500 billion in shares issued by Hanjin KL and 300 billion won in the company’s convertible bonds.
Hanjin, the holding company of the airline Consumer Hanjin Group, is expected to submit a letter of intent to KDB early this week to move ahead with the deal tomorrow.
In its comprehensive acquisition plan, after completing the acquisition of ASEAN, Korean Air gradually acquired three low-cost carriers – Korean Air’s Jin Air Company and Asiana’s Air Busan Co. and Air Seoul Inc.
A majority Asiana stake is with Kumho Industrial Company, an affiliate of the airline-to-petrochemical group Kumho Asiana Group.
In September, Asiana’s creditors – KDB and Export-Import Bank of Korea – approached HDC Hyundai Development Co. regarding differences in terms of the deal. Decided to end the deal drawn to sell to Asiana. Covid 19 Ubiquitous Epidemic.
The HDC-led consortium initially signed an agreement to acquire Asiana from Kumho Industrial, as well as issue new Asiana shares and won the carrier’s six affiliates for 2.5 trillion.
But HDC later confirmed another round of due diligence on Asiana to reflect the terms of the transaction with Kumho and the impact of the epidemic on the airline industry.
The demand was rejected by the creditors. (Yonhap)