Asiana Airlines on Tuesday announced a reduction in capital.
Hyundai Development Company’s (HDC) deal with Kumho Industrial to acquire its stake in Asiana Airlines was officially scrapped on Friday, nine months after the two parties signed an agreement in December.
Hyundai Development Company (HDC) is sticking firm to its position on the acquisition of Asiana Airlines, possibly dooming the deal and the airline itself.
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.
HDC Hyundai Development and Kumho Industrial are still divided over how to hold a meeting to find a breakthrough in a stalled deal over Asiana Airlines, industry sources said Wednesday.
The Asiana Airlines takeover may be back on track as the buyer indicated that it was open to a face-to-face meeting with the seller, which enthusiastically welcomed to overture.
Asiana reported a 115.1 billion won operating profit, a turn around from a 107 billion won loss during the same period in 2019. It also reported a net profit of 116.2 billion won, a turnaround from 57.7 billion won net loss a year ago.
On Monday, Korea Development Bank (KDB) accused Hyundai Development Company (HDC) of being uncooperative and unwilling to communicate.
All ways to keep cash-strapped Asiana Airlines afloat are being considered including nationalization, according to Financial Services Commission Vice Chairman Sohn Byung-doo.
Hyundai Development Capital (HDC) has requested a three-month re-evaluation of Asiana Airlines and its affiliates to reconsider contract terms for acquiring Korea’s second-largest air carrier.