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HDC's Acquisition of Asiana Airlines Being Delayed
Acquisition Procedure Going on as Scheduled
HDC's Acquisition of Asiana Airlines Being Delayed
  • By Jung Min-hee
  • April 2, 2020, 11:23
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HDC Hyundai Development's acquisition of Asiana Airlines is being delayed due to the spread of COVID-19.

Asiana Airlines announced on April 1 that reviews in South Korea, China, the United States, Turkey, Russia and Kazakhstan related to its business combination with HDC Hyundai Development Co. are being delayed due to the spread of COVID-19 and it had to postpone the date of payment for initial paid-in capital increase.

Specifically, on March 27, the airline indefinitely postponed the date from April 7 and changed the scheduled date of capital increase-based new share listing to within 15 days from the date of payment. Then, it was said that HDC’s acquisition of the airline was indefinitely postponed.

The consortium of HDC and Mirae Asset Daewoo was selected on Nov. 12 last year as the preferred bidder for the acquisition of Asiana Airlines. On Dec. 27, the consortium signed a share acquisition agreement worth 2,177.2 billion won with the airline. Earlier, HDC was planning to pay 1,466.4 billion won by April 7 once conditions are met with regard to the reviews and so on.

“As we already announced on Dec. 27 last year, the scheduled date of Asiana Airlines share acquisition is April 30,” HDC explained, adding, “The acquisition procedure is going on as scheduled.”

HDC successfully prepared 320.7 billion won by capital increase last month after having prepared 170 billion won by private placement corporate bond issuance in the previous month. However, the acquisition is unlikely to be completed in the first half of this year with the initial payment postponed.