Hyundai-led Consortium to Take Over Asiana
13 November, 2019
Property developer HDC Hyundai Development will become the new owner of Asiana Airlines, Korea's second largest flag carrier.
In a board meeting on Tuesday, Kumho Industrial, Asiana's biggest shareholder, picked a consortium of HDC and Mirae Asset as the preferred bidder, according to a spokesman. They hope to sign a deal by year's end.
HDC will also take over Asiana's six subsidiaries, including budget carriers Air Seoul and Air Busan, and Asiana IDT. But there is still a possibility that some subsidiaries will be sold separately.
HDC Hyundai Development chairman Chung Mong-kyu (center) speaks at a press conference in Seoul on Tuesday. /Yohap
The HDC consortium has offered W2.4-2.5 trillion as an opening bid (US$1=W1,163).
The Ministry of Land, Infrastructure and Transport has concluded that HDC is qualified for the aviation business. But it faces an uphill struggle amid dwindling passenger numbers for big airlines and fierce competition from budget carriers.
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