Hanjin Kal sells its entire stake in Jin Air to Korean Air for 604.8 billion won
Reorganization of Hanjin Group’s corporate governance… “Strengthening competitiveness through vertical integration”
Hanjin Kal held a board meeting on the 13th and announced that it had decided to sell its 54.91% stake in Jin Air to its subsidiary, Korean Air. photo = news 1
Hanjin Group holding company Hanjin Kal(59,700 -2.93%)The low-cost carrier (LCC) Jin Air(16,550 -3.50%) 54.91% of shares (28,66,046 shares) Korean Air(27,000 -3.23%)sold to It is explained that the measure is to improve the financial structure and optimize the airline network through vertical integration of airline affiliates within the group.
in the industry Korean Airclass Asiana Airlines(17,000 -5.29%) established after merger Jin AirThe integrated low-cost carrier (LCC) of Air Busan and Air Seoul Korean Air I saw it as a work to reorganize the governance structure of Hanjin Group to become an affiliate.
Hanjin Kalheld a board meeting on the 13th Hanjin Kalholding this Jin Air 54.91% of the shares are wholly owned by subsidiaries Korean Airannounced that it has decided to sell it to stocks to be sold Hanjin Kalpossessed Jin Air The sale is worth about 604.8 billion won with 28,66,046 shares.
With the sale of the stake, Hanjin Group’s subsidiary Jin Airbecomes grandchildren. after Jin Airgo Asiana Airlines If an integrated LCC is launched by integrating with its subsidiaries Air Busan and Air Seoul, violations of restrictions on holding companies under the Fair Trade Act can be avoided.
Hanjin Kal held a board meeting on the 13th and announced that it had decided to sell its 54.91% stake in Jin Air to its subsidiary, Korean Air. Photo = Jin Air
Hanjin KalRegarding the sale of the stake, he said, “Currently pursuing Korean Airclass Asiana Airlinesof the Unified Carrier (FSC) and Jin AirIt will serve as an opportunity to lay the foundation for the launch of an integrated LCC including
In addition, the sale of the stake is expected to improve the financial structure and reorganize the group’s corporate governance.
Hanjin Kalhas increased its borrowings to more than 1 trillion won after 2020. The proceeds from this sale will be used to repay debts that will come this year. Hanjin KalIn the meantime, the company has increased its borrowings by participating in capital increase to support subsidiaries suffering from the aftermath of the novel coronavirus infection (COVID-19).
In addition, through vertical integration of Hanjin Group’s aviation affiliates, the airline plans to optimize the airline network by increasing the efficiency of overlapping routes and strengthening connecting flights.
Hanjin Kalis “this time Hanjin Kalof Jin Air The sale of shares corresponds to a transfer of shares within the same affiliate group and is currently in progress. Korean Airof Asiana Airlines “It does not affect overseas business combination reports related to mergers and acquisitions.”Jin Airgo Korean Air By being incorporated as a subsidiary, we have created an environment where we can flexibly respond to the rapidly changing demand for air passengers.”
Oh Jung-min, reporter at Hankyung.com [email protected]
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