Friday, September 20, 2019
Delta Air Increases Stake in Korean Air’s Parent Firm to 9.21%
Little Impact on Stock Prices
Delta Air Increases Stake in Korean Air’s Parent Firm to 9.21%
  • By Yoon Young-sil
  • September 11, 2019, 11:26
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Delta Air Lines Inc. has increased its stake in Hanjin KAL Corp., the parent company of Korean AirLines Co., to 9.21 percent.

Delta Air Lines Inc. has increased its stake in Hanjin KAL Corp., the parent company of Korean AirLines Co., to above 9 percent. Yet the increase would not have a great impact on the price of Hanjin KAL shares for the moment as Delta Air said that it would not do anything that affects the company’s management rights.

Hanjin KAL announced on Sept. 10 that Delta Air held a 9.21 percent stake in it as of Sept. 6. Delta Air announced on Aug. 1 that it owned a 5.13 percent stake in Hanjin KAL. It has bought an additional 4.08 percent stake, or 2,414,286 shares. Delta Air previously said that it would increase its stake in Hanjin KAL to 10 percent.

A researcher said, “Delta Air has increased investment in airliners in emerging countries as the North American airline industry has matured. Since Delta Air has made an equity investment in Hanjin KAL to expand its airline business, it probably does not like to see the company’s managerial stability undermined.” The price of Hanjin KAL shares rose 1.08 percent to 28,200 won (US$23.69) on Sept. 10 after the disclosure of Delta Air’s stake.