See More on Facebook

Business

Final bidding wraps up for sale of Asiana Airlines

Asiana Airlines have struggled after high profile accidents and debt.


Written by

Updated: November 8, 2019

Bidders for the sale of Asiana Airlines, the nation’s second-largest air carrier, threw their hats in the ring Thursday for a last chance, raising market expectations as to the fate of the cash-strapped company.

Kumho Industrial has put a 31 percent stake in Asiana Airlines up for sale. Three bidders — Aekyung Group, Hyundai Development Company and Korea Corporate Governance Improvement — submitted applications. Kumho and Credit Suisse, the lead manager of the sale, are expected to undertake financial assessments for a week or two and then pick a preferred bidder. They are likely to close a deal by the end of this year.

Aekyung Group and HDC have each partnered with financial companies for the prospective acquisition.

Confirming its bid, Aekyung Group said in a statement in the afternoon that it had submitted the required application and that having Asiana under its roof would create synergy since it also operates Jeju Air.

“There are many cases of air carriers strengthening their competitiveness through mergers and acquisitions between airline operators,” it said. Last month, Aekyung and Stone Bridge formed a consortium, while local fund KCGI joined hands with the BankerStreet private equity fund.

HDC and its partner Mirae Asset said they would wait to hear a “wise decision” from Kumho Industrial.

The sale price of Asiana Airlines has been estimated at around 2 trillion won ($1.72 billion) with 7 trillion won in debt, according to some industry observers.



Enjoyed this story? Share it.


The Korea Herald
About the Author: The Korea Herald is the nation’s largest English-language daily and the country’s sole member of the Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Business

India’s exit from 16-nation regional trade pact moves closer to reality

Japan intends to continue efforts to persuade India to remain in the RCEP. TOKYO (The Japan News/ANN) – The withdrawal of India from the negotiations for the Regional Comprehensive Economic Partnership free trade deal (RCEP) which have involved 16 countries including Japan, China, South Korea and members of the Association of Southeast Asian Nations (ASEAN), is seemingly coming closer to reality. Japan intends to continue efforts to persuade India to remain in the initial 16-country framework for the agreement of the regional trade talks. However, as there is still strong opposition to the RCEP within India, it remains to be seen whether the negotiations will go smoothly. At a press conference after a Cabinet meeting on Friday, Economy, Trade and


By The Japan News
December 9, 2019

Business

Huawei asks US court to overturn ban

The company is suing the FCC, the latest in a series of legal tussles. The legal battle between Huawei Technologies Co and United States government intensified on Thursday. The Chinese tech heavyweight announced a legal challenge to the US Federal Communications Commission, seeking to overturn the latter’s order that bans telecom carriers from buying the company’s equipment via federal subsidies. The move is the latest push by the world’s largest telecom equipment maker to pursue fair competition and treatment amid a slate of restrictions from Washington. Analysts said the FCC ban would have very limited impact on Huawei’s financial performance, but labeling the company as a national security threat would cause far-reaching reputational harm. In a petition filed in the US Court of Appeals for the Fifth Circuit on Thursday, Huawei asked the court to declare the FCC order un


By China Daily
December 6, 2019

Business

Chinese FM to visit India this month for boundary talks

The talks were to be held in September but had to be postponed as the two sides could not find a suitable date for the meeting. Chinese Foreign Minister Wang Yi is expected to visit India later this month to hold boundary talks with National Security Advisor Ajit Doval, sources said on Wednesday. Wang, who is also a State Councillor, and Doval are the designated Special Representatives (SRs) of the two countries for the boundary talks. The talks were to be held in September but had to be postponed as the two sides could not find a suitable date for the meeting. Besides holding boundary talks with the NSA, Wang, a trusted lieutenant of Chinese President Xi Jinping, will meet External Affairs Minister S Jaishankar. He will also call on Prime Minister Narendra Modi.


By The Statesman
December 5, 2019

Business

Najib to take the stand today

The former premier is accused of malfeasance. Today is the day that Malaysians will see, for the first in the country’s history, a former prime minister take the stand to answer charges against him in a court of law. Datuk Seri Najib Razak (pic), 66, will testify from the witness box as the first defence witness to rebut his seven charges of misappropriating RM42mil in SRC International Sdn Bhd funds before High Court Judge Mohd Nazlan Mohd Ghazali. According to his co-counsel Harvinderjit Singh, Najib will be called as the first witness on the opening day of the defence’s proceedings. Najib will be first questioned by his defence during examination-in-chief before being cross-examined by the prosecution. On Nov 11, Justice Mohd Nazlan ordered Najib to enter his defence on three counts of criminal breach of trust (CBT), three charges of money laundering and on


By The Star
December 3, 2019

Business

Is Vietnam an attractive place for Samsung chip plant?

The tech giant already has manufacturing plants in the country. Is Vietnam a good place for chipmakers to consider building a high-tech plant? In light of a request by the Vietnamese head of state to Samsung Electronics, the world’s largest chipmaker, many in South Korea are asking whether it is a viable business move. In a private meeting held in Seoul on Thursday, Vietnamese Prime Minister Nguyen Xuan Phuc asked Samsung Electronics Vice Chairman Lee Jae-yong to consider building a chip manufacturing facility there. The Korean tech giant already has production plants for mobile phones and other IT devices in the country. Following the re


By The Korea Herald
December 2, 2019

Business

Hundreds in Hong Kong hail Trump’s endorsement of Bills while pro-Beijing camp sees red

The US made into law a bill supporting pro-democracy demonstrators in Hong Kong. Hundreds gathered in Hong Kong’s Central financial district on Thursday night (Nov 28) to celebrate the signing of a Bill in the United States that supports the city’s pro-democracy protesters. Some participants waved American flags while the crowd shouted slogans like “fight for freedom, stand with Hong Kong”. Prominent activist Joshua Wong, who lobbied for the new US laws, said it was a “remarkable achievement” that human rights triumphed over crucial US-China trade talks. He said he hoped more countries would set up similar mechanisms to sanction Hong Kong officials who undermine the city’s freedoms. “Now is t


By The Straits Times
November 29, 2019