HDC Hyundai Development Co. has announced it signed a deal to acquire Asiana Airlines Inc. as it diversifies its business portfolio, the company said.
The signing comes after the consortium formed between HDC and Mirae Asset Daewoo was picked the preferred bidder to acquire a 30.77-percent Asiana stake held by Kumho Industrial, as well as new shares to be issued and the airline´s six affiliates, for KRW 2.5 trillion won (USD 2.2 billion).
The company plans to invest KRW 2.177 trillion in new shares to be issued by Asiana Airlines to help improve the airline´s financial status. It will focus on improving profitability by streamlining routes and enhancing cost effectiveness.
In the deal, Kumho Industrial has also agreed to be responsible for 9.9 percent of any possible contingent liabilities and taxes of Asiana Airlines after acquisition.
HDC plans to complete the overall acquisition process by April 2020. It is expected to own a 61.5 percent stake in Asiana Airlines after the planned rights issue, with Mirae Asset Daewoo set to have a 15 percent stake in the carrier.