S.Korea's Aekyung, KCGI to join bidding for Asiana Airlines - sources (updated)
03/09/2019 03:37
(Add share prices, background, changes slug)
SEOUL, Sept 3 (Reuters) - South Korean retail-to-airline
group Aekyung and activist fund KCGI plan to participate in
preliminary bidding for a stake in Asiana Airlines 020560.KS ,
the country's No.2 carrier on Tuesday, company officials said.
Big conglomerates GS, SK and Hanwha would not participate in
the bidding for the debt-ridden carrier, company spokesmen said.
The 31.05% stake, worth 387.4 billion won ($319.5 million)
as of Monday's closing price, has been put up for sale by top
shareholder Kumho Industrial 002990.KS , which has been under
pressure from creditors to reduce its debt.
The sale comes as the South Korean airline industry
struggles with higher fuel costs and weakening demand due to a
diplomatic row between Seoul and Tokyo. urn:newsml:reuters.com:*:nL4N24V0O7
Asiana Airlines and bigger rival Korean Air Lines
003490.KS swung to operating losses for the April-to-June
quarter, from a year earlier.
KCGI would form a consortium to bid for the Asiana stake, a
KCGI source said without disclosing its partners.
South Korean brokerage Mirae Asset Daewoo 006800.KS also
would take part in the deal as a financial investor, a company
official said without elaborating.
Asiana shares rallied more than 7% on Tuesday, while its
budget arm Air Busan 298690.KS and Asiana IDT 267850.KS
gained more than 4% each. urn:newsml:reuters.com:*:nL3N25U038
($1 = 1,212.6600 won)
(Reporting by Hyunjoo Jin and Ju-min Park; editing by Richard
Pullin and Stephen Coates)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))