Korean Air signed an agreement with Air Incheon to sell Asiana Airlines’ freight business for 470 billion won ($342 million), according to the flag carrier’s regulatory filing on August 7.
Korean Air stated that this decision was based on Air Incheon’s credibility as a cargo-only airline, its potential for long-term business competitiveness and its ability to secure funds through a robust consortium.
Korean Air will then undergo a buyer review and final merger approval review by the European Commission. Once the European Commission and U.S. Department of Justice complete their reviews, Korean Air will proceed with the final acquisition procedures through a new stock acquisition agreement with Asiana Airlines. The sale contract with Air Incheon will be finalized afterward.
Socius Private Equity, the parent firm of Air Incheon, has teamed up with strategic investor Inhwa Precision and financial investors Korea Investment Partners, Korea Investment & Securities, and Shinhan Securities for this acquisition. Other strategic investors, including Hyundai Glovis, are expected to join the consortium, according to sources.
