Secures 800 Bil. Won in Liquidity
Korean Air announced on Aug. 25 that it has signed a business transfer agreement with private equity fund Hahn & Co. to sell its in-flight meal and duty-free businesses. The agreement is expected to result in a liquidity of approximately 800 billion won on the airline’s part.
The total value of the agreement is 990.6 billion won and the business will be sold to a corporation to be established by Hahn & Company. Korean Air will acquire 20 percent of the shares of the corporation.
The agreement is likely to be completed in two or three months. Korean Air is planning to sign an in-flight meal supply and duty-free sales contract with the corporation before the final date of the agreement.
The annual sales of Korean Air’s in-flight meal and duty-free business have been over 200 billion won. It is one of the most lucrative parts of the airline and it was expected that the business unit would lead the airline’s business performance recovery after a rebound in global aviation demand from COVID-19.
The total assets under management of the 10-year-old PEF are 8.1 trillion won. Last year, it raised a blind fund of 3.8 trillion won.