Kumho Asiana Group and Korea Development Bank (KDB) have decided to sell a stake in Korea Express, the listed South Korean shipping company, reported the Korea Herald.
Kumho Asiana is a South Korean conglomerate which is in a restructuring process with its creditor, Korea Development Bank.
The report cited industry sources as saying that Kumho Asiana has decided to dispose of a maximum 25.6% stake in Korea Express, held by its subsidiary, Asiana Airlines. KDB will also sell a 24% stake in the shipping company, held by Daewoo Engineering & Construction, which KDB recently acquired a controlling stake. The two parties will discuss the schedule and price for the sale by the end of this month, and will initiate the sale next month.
According to an unsourced part of the report, Kumho Asiana decided to sell the stake to aid with the restructuring of the financial status of the subsidiary, Asiana Airlines. The report estimated that the sale price including a management premium could be somewhere between KRW 1.7tn (USD 1.5bn) and KRW 2tn (USD 1.7bn). South Korean steelmaker POSCO and Korean conglomerate such as Samsung, SK, Lotte, Hanjin and CJ are mentioned as potential buyers, the report added, citing industry sources.
Source: Korea Herald
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