3-Way Race on to Acquire Asiana Airlines

  • By Shin Eun-jin

    September 04, 2019 13:11

    Preliminary bids to acquire Korea's No. 2 flag carrier Asiana Airlines closed Tuesday with a three-way race.

    The bidders are between Aekyung Group, a Mirae Asset-led consortium, and corporate raiders KCGI. SK, GS, Hanwha and CJ pulled out citing uncertain business prospects. Credit Suisse, which manages the sale, closed bidding at 2 p.m.

    Financial industry insiders believe it will cost more than W1 trillion to acquire Asiana. The deal includes budget carriers Air Busan and Air Seoul as well as three other subsidiaries, resulting in a final price tag close to W2 trillion (US$1=W1,216).

    One industry source said, "The aviation industry is suffering a slump, which resulted in a lower-than-expected level of participation in the bid. The prevailing view is that the acquisition will not be easy since there is no strong contender."

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