S.Korean activist fund KCGI eyes stake in Asiana Airlines (updated)
19/08/2019 02:53
(Add KCGI CEO comments, background about the deal)
SEOUL, Aug 19 (Reuters) - South Korea's activist fund KCGI,
the second-largest shareholder in the parent company of Korean
Air Lines Co Ltd 003490.KS , is interested in buying rival
carrier Asiana Airlines Inc 020560.KS , KCGI Chief Executive
Kang Sung-boo told Reuters.
KCGI is in talks with several local and overseas entities to
form a consortium to join the bidding for Asiana Airlines, which
is expected to receive initial bids on Sept.3, Kang said on
Monday, without elaborating further.
Kumho Industrial 002990.KS , the top shareholder of Asiana
Airlines, said in April it would sell its entire 31.05% stake in
the debt-ridden carrier to keep it afloat. The stake is worth
341 billion won ($282.03 million) as of Friday's closing price.
Korean's chip-to-refinery conglomerate SK Group and
retail-focused Aekyung Group, which also has a stake in budget
carrier Jeju Air 089590.KS , were named as potential suitors by
local media, but the two firms did not publicly said whether
they were interested in the bidding or not.
"I believe the entire airline industry in Korea is in
crisis. The industry needs to undergo a change," Kang told
Reuters over the phone.
Shares of Asiana Airlines, South Korea's second-largest
carrier after Korean Air Lines, were trading up 1.8% in early
trade, while affiliate Asiana IDT 267850.KS rose 3.5% in the
wider market .KS11 that was up 0.6%.
($1 = 1,209.1000 won)
(Reporting by Hyunjoo Jin; Editing by Rashmi Aich)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))