This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXMPEE3H05R_M.jpg
Korea Development Bank said Monday it will inject 800 billion won into Hanjin Kal through a rights offering and perpetual bonds. Hanjin Kal will then participate in a 2.5 trillion won share sale by Korean Air that will be used to invest in Asiana, KDB said in a statement. The bank said it hopes to complete the deal by year-end.
Asiana was established in 1988 to compete with Korean Air. Before the coronavirus pandemic, Asiana flew to 61 cities in 21 countries. It has two budget carriers, Air Seoul and Air Busan.
“South Korean airlines need to rationalize their networks more than anything else for their survival,” said Um Kyung-a, an analyst at Shinyoung Securities Co. in Seoul.
Kumho Industrial terminated talks to sell a 31% stake in Asiana to HDC Hyundai Development Co. in September after the parties failed to agree terms as the pandemic threw valuations into doubt.
©2020 Bloomberg L.P.
