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KDB sees ‘super-large airline’ as plan to shake up the aviation industry
The government announces a plan to reorganize the aviation industry as early as the mountain and gyeongjang meeting in Naeju.
Real success is expected to be difficult … “Preferences can be controversial”
However, voices of criticism have already been raised that “there is no reality.” There are not one or two variables that need to be overcome, including strong opposition from the tripartite alliance, Korean Air parent company Hanjin Kal’s largest shareholder to raising capital to normalize Asiana Airlines, and the monopoly controversy.
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| Korean Air and Kumho Asiana Group headquarters [사진=뉴스핌DB] |
According to the financial sector on the 13th, KDB is in talks with Hanjin Group about a plan to acquire Asiana Airlines.
In a press release the day before, the Bank said: “(The merger of Korean Air and Asiana Airlines) is one of several options.” This means that Korean Air and Asiana Airlines are considering reorganizing the domestic aviation industry through big business.
The market is fluctuating on the news of big business in the airline industry. Hanjin Group is said to send a letter of intent (LOI) to Asiana Airlines within this month earlier this month, and the government will also announce plans to reorganize the aviation industry at a ministerial meeting related to strengthening the industrial competitiveness next week.
The acquisition method is a plan to acquire a 30.77% stake in Asiana Airlines, owned by Kumho Industrial, the current majority shareholder of Kumho Industrial, after KDB invests up to KRW 1 trillion in a capital increase through a “ tripartite allocation ” to Hanjin Kal, Hanjin Group’s holding company. This is discussed.
If the big business is successful, the synergy effect is expected to be maximized. The world’s 10th largest airline with assets of 40 trillion won and sales of 20 trillion won will be born. Both airlines own 259 aircraft. In particular, there is the advantage that unnecessary costs can be greatly reduced since it is possible to unify overlapping aircraft routes.
However, considerable difficulties are expected until the acquisition is final.
Right now, there is a controversy over San Eun’s preferential treatment as a relief pitcher for Han Jin Kal. If KDB invests 1 trillion won in funds through a paid capital increase method assigned to a third party, it becomes the main shareholder of Hanjin Kal. However, for Hanjin Kal, there is a dispute over management rights between Cho Won-tae, Chairman of Hanjin Group, and the Three-Party Shareholders Alliance, in which KCGI (Gangseongbu Fund) participated. This is the reason why San Eun-yi is reportedly helping to defend President Cho’s management rights.
A financial sector official said: “It may be a way to defend the management rights of the total number of companies through the national tax. From the point of view of the tripartite association of shareholders, we will try to block the participation of the KDB shareholders. somehow”.
The mountain is also aware of this. When it was announced that Korean Air would take over Asiana Airlines, the KDB said: “It has not yet been confirmed. Asiana Airlines is conducting external consultancy for standardization.”
The poor financial structure of Asiana Airlines is also a variable. Although KDB will ease the burden with this investment method, the situation is so bad that doubts are raised that Korean Air can handle it.
Asiana Airlines’ debt-to-equity ratio reached 2,291% in June. The share capital ratio is also around 56%. It is clear that Korean Air, which has sold significant assets such as the Songhyeon-dong site in Seoul, does not appear to be able to handle it immediately due to insufficient funds.
The approval or not of a business combination by the Fair Trade Commission is also an obstacle. Overall, the proportion of passengers nationwide is 62.5%. In fact, it is a monopoly.
Another financial sector official said: “I think it is a global airline integration trend that is spreading after the Corona 19 crisis,” and “There are too many variables to overcome, so it remains to be seen whether it will lead to real success. “.
