The proposed acquisition of South Korean carrier Asiana Airlines by Hyundai Development Company (HDC) from Kumho Industrial has collapsed.

In April 2019, Kumho Industrial reportedly decided to sell its entire stake in Asiana Airlines as part of its plans to secure liquidity and improve its financial structure.

HDC and brokerage Mirae Asset Daewoo agreed to buy a controlling stake in the airline last December. Kumho Industrial is Asiana’s biggest shareholder and the deal totalled around $2.1bn.

The development follows after HDC reportedly sought to renegotiate acquisition terms related to Asiana Airlines in June following the impact of the coronavirus (Covid-19).

As the acquisition now stands cancelled, creditors plan to inject $2bn into Asiana Airlines.

Lead creditor state-owned Korea Development Bank said the creditors will soon relaunch Asiana’s sale, Reuters reported citing the carrier.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Meanwhile, Hyundai Development said in a regulatory filing that it is waiting for a legal review, following which it plans to respond on the deal collapse. However, it blamed that Asiana failed to ‘meet preconditions’.

As at the end of June, Asiana had a total debt of $10bn, according to its regulatory filing.

Since April, the carrier has suspended a majority of its international operations. Its 9,000 employees have also been sent on unpaid leave for 15 days a month.