Hyundai Glovis is reportedly considering participating in the acquisition of Asiana Airlines’ cargo business. Asiana Airlines is one of South Korea’s major airlines, which has been undergoing financial difficulties exacerbated by the COVID-19 pandemic.
According to industry sources, Hyundai Glovis, a transportation subsidiary of the Hyundai Motor Group, is considering joining the consortium led by Air Incheon as a strategic investor (SI) to acquire Asiana Airlines’ cargo business.
However, in response to related news, Hyundai Glovis clarified that no decisions have been made. A representative from Hyundai Glovis stated, “Nothing has been confirmed yet.”
It is known that Hyundai Glovis was considering entering the acquisition race for Asiana Airlines’ cargo business as an SI in the early stages of the M&A process.
Previously, at the 2024 CEO Investor Day in June, Hyundai Glovis CEO Lee Kyoo-bok announced plans to invest 9 trillion won by 2030.
At that time, Lee stated that they would secure sustainable growth drivers by efficiently operating existing assets while investing approximately 1.3 trillion won annually in core assets, and added, “We will also actively consider growth through mergers and acquisitions (M&A) as needed strategically.”
Meanwhile, Korean Air held a board meeting on July. 17 and selected Air Incheon as the preferred bidder for the sale of Asiana Airlines’ cargo business.
Socius, a Private Equity (PE), the major shareholder of Air Incheon, plans to raise acquisition funds through a capital increase of its existing fund. Air Incheon has a governance structure of ‘Inhwa Precision (99.57%) → Socius No. 5 PEF → Socius Aviation (80.3%) → Air Incheon,’ and Hyundai Glovis is being considered for participation in the capital increase of Socius No. 5 PEF.
