More due diligence granted on KAI ahead of sale

The state lender managing the sale of Korea Aerospace Industries (KAI) said yesterday it has decided to extend ongoing preliminary due diligence on the country’s sole aircraft maker by Korean Air and Hyundai Heavy Industries by two weeks until Dec. 7.

Korea Finance Corporation (KoFC) also said that the nation’s top air carrier and the world’s largest shipbuilder are set to make binding bids for a 41.75 percent stake in KAI on Dec. 17, more than two weeks behind the original schedule.

The move comes as Korean Air and Hyundai Heavy Industries asked the KoFC to extend the period of preliminary due diligence, citing internal procedures necessary for bidding, a KoFC official said. He did not elaborate and asked not to be identified, citing policy.

Korean Air has recently renewed its determination to take over the country’s sole aircraft manufacturer as it seeks to eventually build its own airplanes.
KoFC, the biggest shareholder of the KAI with a 26.41 percent interest, has said it will retain a 15 percent hold on the aircraft maker while Hyundai Motor, precision machinery maker Samsung Techwin and Doosan Group plan to off-load 10 percent stakes each.

Yonhap