Hyundai Development consortium to buy 31.05% of Asiana Airlines for $2.16 bn
03 January 2020
South Korean construction major Hyundai Development Co said on Friday its consortium will acquire a controlling stake in the country’s second-biggest carrier, Asiana Airlines Inc, for 2.5 trillion won ($2.16 billion).
Hyundai Development said it will share 2.01 trillion won of the 2.5 trillion won its consortium with Mirae Asset Financial Group will pay for the acquisition.
Asiana’s top shareholder, Kumho Industrial Co Ltd, put its 31.05 per cent stake up for sale earlier this year as it came under pressure from the airline’s creditors to reduce debt at the loss-making carrier.
Hyundai Development Company (HDC) said its consortium with Mirae Asset has been selected as the preferred bidder for the acquisition of Asiana Airlines, a representative airline of South Korea.
“HDC Hyundai Development Company feels massively honored for being selected as the preferred bidder on the 12th by participating in the main bidding for the acquisition of Asiana Airlines, a representative airline of South Korea,” Mong-gyu Chung, chairman of HDC Group, said.
“The acquisition of Asiana Airlines is based on the strategic judgment that the airline industry, the national infrastructure, is in line with the sustainable growth of HDC Group. HDC Hyundai Development Company will make every effort to conclude this contract smoothly as a preferred bidder and will support Asiana Airlines as much as possible so that Asiana Airlines can have the best competitiveness after the contract,” he added.
The acquisition by Hyundai Development Company is expected to ease the financial pressures of Asiana Airlines, which is facing domestic and international competition.
HDC will also continue to invest in new aircraft and services after the acquisition.
The acquisition will also see the HDC Group expanding in the mobility group as well as the aviation industry. HDC hopes to strengthen the future competitiveness of South Korea by creating positive synergy with the employees of Asiana Airlines.