S.Korea's Hanjin Group in talks to buy Asiana Airlines - report (updated)

Kumho Engineering & Construction

13/11/2020 01:09

(Adds share movement)
    SEOUL, Nov 12 (Reuters) - South Korea's Hanjin Group, owner
of the nation's largest airline Korean Air Lines Co Ltd
 003490.KS , is in talks to acquire debt-ridden Asiana Airlines
Inc  020560.KS , local media reported on Thursday, citing
unnamed investment banking sources.
    The Korea Economic Daily said Hanjin Group has been in talks
with Korea Development Bank (KDB)  KDB.UL  and will be
submitting a letter of intent to the bank next as early as next
week.
    Hanjin Group told Reuters nothing has been decided, while
Asiana Airlines said they were not aware of such talks.
    Asiana's lead creditor KDB said in an emailed statement
talks with Hanjin Group was one of the options under
consideration but also said that nothing had been decided.
    Shares of Asiana Airlines jumped as much as 25.6% to hit a
near seven-month high, Korean Air rose as much as 6.5% in
morning trade. Shares of Hanjin Kal  180640.KS , the holding
company of Hanjin Group, were down 8.5% versus a 0.2% fall in
the broader KOSPI  .KS11  as of 1256 GMT. 
    "The sale itself is a good news for Asiana Airlines ...
Korean Air will likely benefit from the country's No. 2 full
service carrier dropping out of competition, while the
integration may bring positive outcomes for South Korea's
aviation industry," said Lee Han-joon, an analyst at KTB
Investment & Securities. 
    A planned sale of Asiana Airlines, South Korea's
second-largest carrier, collapsed in September.  urn:newsml:reuters.com:*:nL4N2G826X
    Hyundai Development Co  294870.KS  and brokerage Mirae Asset
Daewoo  006800.KS  had agreed in December 2019 to purchase
control of Asiana Airlines for about 2.5 trillion won ($2.25
billion), but they called for better terms after the airline's
debt surged after the coronavirus pandemic hit travel
demand. urn:newsml:reuters.com:*:nL4N2DM0FO
    ($1 = 1,112.5800 won)

 (Reporting by Heekyong Yang and Joori Roh; editing by Barbara
Lewis and Edwina Gibbs)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 6936 1470;))