Trillion-won discount for Asiana not discussed, KDB claims

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Trillion-won discount for Asiana not discussed, KDB claims

Korea Development Bank (KDB) Chairman Lee Dong-gull speaks at an online press event on Aug. 3, discussing KDB’s stance on the Asiana Airlines acquisition deal. [YONHAP]

Korea Development Bank (KDB) Chairman Lee Dong-gull speaks at an online press event on Aug. 3, discussing KDB’s stance on the Asiana Airlines acquisition deal. [YONHAP]

 
Korea Development Bank (KDB) has not agreed to a 1-trillion-won ($843-million) discount on Hyundai Development Company (HDC)'s acquisition of Asiana Airlines despite a report that the reduction in price had been discussed, the bank said.  

 
"The report on a trillion-won discount isn't true," said Lee Dong-seon, a spokesperson for KDB.
 
KDB Chairman Lee Dong-gull and Hyundai Development Company Holdings CEO Chung Mong-gyu met on Wednesday to discuss HDC’s acquisition of the troubled carrier.  
 
“About the discussion with the CEO, nothing specific was discussed,” KDB wrote in a statement Wednesday. KDB “delivered its stance on the possibility of cooperating with HDC.”
 
The statement arrived after local media reported KDB announced an offer in which HDC would get a trillion-won discount for the acquisition deal.  
 
In December, HDC signed an agreement in a consortium with Mirae Asset Daewoo to acquire stakes in Asiana Airlines from Kumho Industrial for 2.5 trillion won. Kumho Industrial owns 30.77 percent shares in Asiana Airlines.  
 
HDC has already paid 250 billion won as down payment.  
 
The meeting “took place at KDB’s suggestion on Aug. 20 for the chairman of two parties to meet.”
 
"In today’s meeting with HDC, KDB discussed openly about all the possibilities of the acquisition conditions to amicably wrap up the mergers and acquisitions deal. [KDB] will wait for HDC’s response,” KDB wrote.
 
HDC has been requesting a re-evaluation of Asiana Airlines, citing material changes since the acquisition was signed.
 
HDC says the airline’s debt and net loss have greatly increased since the deal was inked, with Asiana having taken out loans without the acquirer’s consent. KDB said requesting a re-evaluation is excessive and indicated that HDC lacked sincerity towards closing the deal for not engaging in face-to-face negotiations.
 
After Lee and Chung’s meeting was reported, Asiana Airlines closed at 4,405 won on Wednesday, up 7.05 percent from the previous day. HDC shares shot up 9.09 percent to close at 10,800 won.
 
BY JIN MIN-JI   [jin.minji@joongang.co.kr]

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