Hanjin Kal to buy Asiana Airlines after getting $724 mln KDB injection -Yonhap (updated)

Kumho Engineering & Construction

16/11/2020 01:54

SEOUL, Nov 16 (Reuters) - Hanjin Kal  180640.KS , owner of
Korean Air Lines Co Ltd  003490.KS , is likely to buy Asiana
Airlines Inc  020560.KS  as Asiana's state-run creditor Korea
Development Bank (KDB) plans to inject 800 billion won ($723.55
million) into Hanjin Kal, Yonhap said on Monday.
    The acquisition would combine the country's two biggest
airlines, although Hanjin Kal's largest shareholder - an
activist fund - has spoken out against the idea.  urn:newsml:reuters.com:*:nL1N2HZ01S
    KDB will inject 500 billion won into Hanjin Kal as a
third-party capital increase, and buy 300 billion won worth of
exchange bonds, Yonhap news agency said, citing unidentified
government sources.
    With KDB injecting funds into Hanjin Kal, the latter is
likely to buy a 30.77% stake in Asiana Airlines owned by Kumho
Industrial Co Ltd  002990.KS , Yonhap said.
    Hanjin Kal plans to have a board meeting on Monday, a Korean
Air spokesperson told Reuters, without elaborating.
    Korea Development Bank declined comment to Reuters before a
media briefing scheduled for Monday morning.
    
   ($1 = 1,105.6600 won)

 (Reporting by Heekyong Yang and Joyce Lee; Editing by
Jacqueline Wong and Christopher Cushing)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 6936 1470;))