Kumho Industrial has accepted HDC Hyundai Development's proposal for a face-to-face negotiation between CEOs of the two companies."It seems a little late, but we think that it is positive that HDC Hyundai Development has accepted our proposal for a face-to-face negotiation," Kumho Industrial sai
The author is an analyst of NH Investment & Securities. He can be reached at ys.hwang@nhqv.com. -- Ed. Kumho’s 2Q20 OP met consensus amid falling raw material (butadiene) costs and tight supply of phenol derivatives. Production costs are expected to rise in 2H20, while supply of phenol derivatives i
HDC Hyundai Development has proposed face-to-face talks between its CEO and the CEO of Kumho Industrial regarding its takeover of Asiana Airlines.This was an answer to Kumho Industrial's Aug. 7 demand for face-to-face negotiations between working-level officials. As HDC Hyundai Development withd
HDC Hyundai Development has reiterated its demand that creditors and Kumho Industrial allow it to undertake another round of due diligence on Asiana Airlines. This means that HDC Hyundai Development has virtually rejected an Aug. 3 ultimatum from Korea Development Bank (KDB) that it needs to show it
The author is an analyst of NH Investment & Securities. He can be reached at dongkil.noh@nhqv.com. -- Ed. Seegene and Alteogen will likely be added to the MSCI Korea Index. We estimate the probability of SK Biopharm’s inclusion in the MSCI Korea as being less than 50%, as it slightly fails to satisf
HDC Hyundai Development and Kumho Industrial are at odds over the former’s acquisition of Asiana Airlines, increasing the chances of negotiations on sale of the airliner collapsing.HDC Hyundai Development said on July 30 that it will conduct another round of due diligence in August before deciding t
HDC Hyundai Development Co. said on July 26 that additional due diligence of Asiana Airlines and its subsidiaries needs to be conducted for about 12 weeks starting from next month for its acquisition of the airline. It also said that it is still willing to acquire Asiana Airlines.“We have sent more
Asiana Airlines has begun reviewing a Plan B as its sale to HDC Hyundai Development is likely to fall through. The faltering airline has reportedly launched a task force to review its options.One of the options is to look for ways for survival under the wing of Kumho Asiana Group. In this case, the
The authors are analysts of Shinhan Investment Corp. They can be reached at johnsoh@shinhan.com and chank@shinhan.com, respectively. -- Ed. 2Q20 OP exceeds the consensus at KRW56.6bnSK Materials posted 2Q20 operating profit of KRW56.6bn (+6.7% QoQ, +2.7% YoY) on sales of KRW227.5bn (+7.1% QoQ, +24.3
The contract deadline for HDC Hyundai Development’s purchase of Asiana Airlines shares from Kumho Group passed on July 12. Initially, the deadline was set on June 27 but was put off by 16 days to July 12 due to a delay in Russian authorities’ review of the acquisition deal.Creditors including Korea
HDC Hyundai Development has received approval from Russian authorities for its acquisition of Asiana Airlines Inc."We have been informed by Russian authorities that the process of the business combination has been completed, and consultations are underway regarding a re-examination of the acquisitio
The authors are analysts of Shinhan Investment Corp. They can be reached at johnsoh@shinhan.com and chank@shinhan.com, respectively. -- Ed. Advancements in etching gas, photoresist, and hard mask to drive visible growthSK Materials recently started to mass produce high-purity (99.999%) hydrogen fluo
Creditors of Asiana Airlines demanded on June 10 that HDC Hyundai Development disclose conditions for its takeover of the ailing airline, after the potential buyer called for renegotiations of the takeover terms, citing the devastating impact from the COVID-19 pandemic."We welcome HDC Hyundai Develo
HDC Hyundai Development chairman Chung Mong-kyu is garnering attention as the June 27 deadline for the acquisition of Asiana Airlines is approaching.HDC Hyundai Development signed a stock purchase agreement (SPA) with Kumho Industrial Co. in December 2019 to take over the ailing airline. This contra
The authors are analysts of KB Securities. They can be reached at yc.baek@kbfg.com and se18190@kbfg.com, respectively. – Ed. Upgrade to BUY and raise TP by 38.2% to KRW94,000We upgrade to BUY and raise our TP by 38.2% to KRW94,000. 2020/21 EPS was raised 30.9%/30.5% on adjustments to 2020E prices fo
Asiana Airlines have received from investors requests for early redemption of convertible bonds worth 10 billion won. The investors decided to exit early, even though the ailing airline is in talks with HDC Hyundai Industrial Development for its sale.The investors who made early redemption requests
The disposal of Asiana Airlines is being delayed. On the face of it, the delay is because of the COVID-19 pandemic and a delayed approval of its business combination. However, some experts point out that HDC Hyundai Development Company is considering canceling the contract. They also point out that
South Korea's Fair Trade Commission (FTC) has announced a new list of 64 large business groups subject to strict regulations.The commission designates conglomerates with assets exceeding five trillion won as large business groups every May in order to regulate their mutual equity investments and
HDC Hyundai Development has postponed its acquisition of Asiana Airlines indefinitely.The company announced on April 29 that it would delay the acquisition of Asiana Airlines shares. It was scheduled to acquire the shares on April 30. But it delayed the date to “10 days after the prerequisites for t
Kumho Engineering and Construction, which is the parent company of Asiana Airlines, is facing a crisis with the sale of the airline postponed and Kumho Buslines, the holding company of Kumho Group, having to repay 130 billion won to Korea Development Bank on April 25.The money was borrowed last year