Hoban Flat "We Have Never Even Considered Acquiring Eastar Jet," Firmly Denies

[Asia Economy Reporter Lee Chunhee] Hoban Construction has actively denied rumors regarding the acquisition of low-cost carrier (LCC) Eastar Jet.

On the 30th, Hoban Construction stated in a press release, "We inform you that Hoban Construction is not involved in the merger and acquisition (M&A) of Eastar Jet."

Recently, reports have flooded the aviation industry and some media outlets claiming that "Eastar Jet is negotiating a sale with a mid-sized domestic company based in Honam, and a decision on the sale will be made soon." When Hoban Construction was identified as the said mid-sized company, it promptly denied the claims.

A Hoban Construction official said, "We have never considered the M&A of Eastar Jet," and "We have never directly expressed any intention to acquire Eastar Jet," dismissing all related suspicions.

The background of these suspicions appears to stem from Hoban Construction's attempt to enter the aviation industry by bidding in 2015 for Kumho Industrial, the largest shareholder of Asiana Airlines. At that time, Hoban Construction submitted a bid lower than the market's expected price, resulting in a failed bid. Since then, whenever airlines have been up for M&A, Hoban Construction has been mentioned as a major candidate. However, Hoban Construction has stated that it has never considered such moves and urged for "reporting based on facts."

Currently, besides Hoban, industry insiders mention Chungheung Construction and Booyoung as strong candidates for the 'Honam-based mid-sized companies' considering the acquisition of Eastar Jet. However, these companies have all actively denied the claims, stating they are "not considering it at all" and have "never pursued it."