Top shareholder of South Korea's Asiana Airlines starts stake sale - parent group

Kumho Engineering & Construction

25/07/2019 07:57

SEOUL, July 25 (Reuters) - The top shareholder of Asiana
Airlines Inc  020560.KS  has kicked off the sale of its stake in
the debt-laden South Korean carrier, an official at Asiana's
parent group said on Thursday. 
    Kumho Industrial Co Ltd  002990.KS  currently holds 33% of
the conglomerate's crown jewel carrier, a stake worth 448
billion won ($379.6 million) as of Wednesday's closing price.
    Kumho Asiana Group, the South Korean No.2 carrier's parent
conglomerate, has been struggling with debt from an aggressive
acquisition spree about a decade ago. It has agreed to sell
Asiana under pressure from its lead creditor.
    The official did not provide further details of the timeline
of the bidding process but said the schedule would "stay
flexible."
    Kumho Industrial on Thursday sought letters of intent from
potential buyers and said it was open to preliminary bids.
    Its main creditor, Korea Development Bank, said in April
that Asiana creditors were targeting the sale of the airline and
its two budget affiliates over the next six months.  urn:newsml:reuters.com:*:nL3N21Y189
    South Korea's SK Group and Hanwha Group, named as potential
buyers in South Korean media reports, have said they are not
interested in buying the loss-making airline. Under South Korean
law, foreign investors can run but not wholly own a South Korean
airline.
    The Asiana conglomerate's chairman, Park Sam-koo, stepped
down from his chief executive posts of Asiana Airlines and Kumho
Industrial in March, after an accounting debacle rekindled
concern about the group’s liquidity. urn:newsml:reuters.com:*:nS6N20Z00U
($1 = 1,180.2000 won)

 (Reporting by Sangmi Cha; editing by Ju-min Park and Stephen
Coates)
 ((Sangmi.Cha@thomsonreuters.com; +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))