South Korea's second-largest airline, Asiana Airlines Inc has been sold to a consortium including Hyundai Development Co according to reports from Reuters today.
The consortium said it has closed on its US$2.16 billion acquisition of a controlling stake in the airline. Hyundai Development said out of the 2.5 trillion won its consortium with Mirae Asset will pay for the acquisition, its portion was 2.01 trillion won.
The airline’s top shareholder, Kumho Industrial Co Ltd (002990.KS), put its 31.05% stake up for sale earlier this year as it came under pressure from Asiana creditors to reduce debt at the loss-making carrier. The deal also includes Asiana’s affiliates - low-cost carriers Air Seoul and Air Busan.
"We plan to invest more than 2 trillion won in new shares to be issued by Asiana Airlines to help improve the airline's financial status. We will focus on improving profitability by streamlining routes and enhancing cost-effectiveness," a spokesperson for Hyundai said.
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