Mirae joins bidding for Asiana Airlines
Aekyung, KCGI also seek to buy debt-ridden firm
Mirae Asset Daewoo has joined the bidding for debt-ridden Asiana Airlines at the last minute.
The nation’s largest brokerage submitted its preliminary bid application for Korea’s second-largest airliner on Sept. 3, the deadline for the bid. Mirae Asset Financial Group founder Park Hyeon-joo also reportedly met high-ranking officials of Credit Suisse, the bid’s sales adviser.
Under related laws on the separation of industrial and financial capital, Mirae Asset Daewoo is not allowed to fully own the airliner so rumors alleged the securities firm had already asked multiple domestic companies to form a consortium for the bid.
An industry insider said Hyundai Development Company (HDC) has confirmed its participation in the consortium.
“Mirae Asset Daewoo submitted its proposal today, with HDC’s participation in the consortium,” an industry insider said.
“HDC runs a duty free store business with Hotel Silla. Acquiring an airliner will create a great deal of synergy with its duty free business considering its operation in the nation’s airports.”
Thanks to Mirae Asset’s participation, the share price of Asiana Airlines reached 6,150 won ($5.06) during the session on Tuesday, up nearly 10 percent from its previous session price of 5,640 won.
Kumho Engineering &Construction, Asiana’s holding company, will single out the shortlist for the bid by the end of September. The main bid is scheduled to proceed in October. It is expected to start negotiating with a preferred bidder in November.
Credit Suisse is managing the stake sale of Asiana Airlines as its M&A adviser.
Rumors alleged a number of domestic conglomerates, including SK, Hanwha, Aekyung and CJ as well as the Korea Corporate Governance Improvement, have expressed their interest in the bid, but none of them, except Aekyung and the KCGI, confirmed their interest.
The KCGI is also Hanjin KAL’s second-largest shareholder as its subsidiary Grace Holdings owns a 15.98 percent stake in Hanjin Group’s holding company. Korean Air is Hanjin KAL’s air carrier unit.
The Asiana deal includes budget carrier affiliates including Air Busan and Air Seoul. The entire deal is estimated at around 1.6 trillion won if including management rights.