HDC signs 2.5 trillion won deal to acquire Asiana Airlines

The major shareholders of 31-year-old Asiana Airlines will change from Kumho Group to HDC Group. Kumho Engineering & Construction announced on Friday that the company concluded a stock purchase agreement with the consortium formed between HDC Hyundai Development Company and Mirae Asset Daewoo.

The consortium will acquire 68,688,063 stocks of Asiana Airlines previously owned by Kumho Engineering and Construction at 4,700 won per share for the total price of 322.8 billion won. It will also invest 2.1772 trillion won in third-party allotment capital increase by acquiring new shares to be issued by Asiana Airlines. The total acquisition cost is 2.5 trillion won.

HDC Hyundai Development Company will have approximately 61.5 percent stake in Asiana Airlines by investing 2.0101 trillion won while Mirae Asset Daewoo, which participated as a financial investor, will hold about 15 percent stake by investing 489.9 billion won. Subsidiaries of Asiana Airlines, such as Air Busan and Air Seoul, Asiana IDT, and Kumho Resort, are also the acquirees. “We will quickly stabilize Asiana Airlines and promote synergies between the carrier and the HDC Group,” said HDC Hyundai Development Chairman Chung Mong-gyu.


bjk@donga.com