HDC Hyundai Development, "No Issues in Asiana Airlines Acquisition Process"

[Asia Economy Reporter Yoo In-ho] HDC Hyundai Development Company announced on the 11th that the acquisition process of Asiana Airlines is progressing normally.

HDC Hyundai Development Company issued a press release on the same day, emphasizing, “HDC Hyundai Development Company is smoothly advancing the corporate merger notification and fundraising procedures for the acquisition of Asiana Airlines.”

Previously, since being selected as the preferred bidder for Asiana Airlines in November last year, HDC Hyundai Development Company has been pushing forward with the acquisition process. They plan to complete the payment of the acquisition price and the main contract by the end of next month.

However, recently, some have speculated that due to adverse factors such as the COVID-19 pandemic worsening the management difficulties in the airline industry and the financial instability of Asiana Airlines being more severe than expected, there might be problems with fundraising and the acquisition process.

In response, HDC Hyundai Development Company refuted these claims, stating, “The acquisition process is proceeding as scheduled.” At the end of February, they raised acquisition funds for Asiana Airlines by issuing approximately 170 billion KRW in private bonds. Subsequently, during the rights offering subscription by existing shareholders held on the 5th and 6th, they achieved a subscription rate of 105.47%, successfully raising 320.7 billion KRW of the acquisition funds without a public offering.

The company plans to raise the remaining funds through a 300 billion KRW public bond issuance and acquisition financing with banks, completing the acquisition of Asiana Airlines according to the planned steps.

HDC Hyundai Development Company also emphasized that the corporate merger notification procedures are being properly conducted with the relevant countries. Starting with the submission of the corporate merger notification to the Korea Fair Trade Commission at the end of January, the company is currently undergoing corporate merger notification procedures in China, the United States, Russia, Turkey, Kazakhstan, and other countries.

They are following the notification procedures according to the standards and processes of the respective countries and expect the corporate merger to be completed through normal procedures and schedules.

An HDC Hyundai Development Company official said, “Although there are market concerns about the corporate merger notification procedures due to the COVID-19 situation, the process is currently proceeding normally,” and added, “Fundraising for the acquisition is also progressing according to the original plan.”