Attention Focused on Kumho Resort Sale... 5 Parties Participate in Main Bidding

Kumho Resort

[Asia Economy Reporter Dongwoo Lee] Five companies participated in the final bidding for the sale of Kumho Resort, a subsidiary of Asiana Airlines.

According to industry sources on the 19th, the final bids for the sale of Kumho Resort, which closed in the afternoon, were submitted by Kumho Petrochemical, the second-largest shareholder of Asiana Airlines, VI Investment & Securities, Kansas Asset Management, Fine Asset Management, and a consortium led by Credian Partners.

The same five companies that were selected as preliminary acquisition candidates in last month's preliminary bidding participated in the final bidding as well. Accordingly, a preferred negotiator is expected to be selected as early as next month.

Due to the impact of the novel coronavirus disease (COVID-19), the popularity of golf courses has increased, leading to heightened interest in Kumho Resort, which owns golf courses in the metropolitan area.

Kumho Resort owns Asiana CC, a 36-hole membership golf course located in Yongin-si, Gyeonggi-do, as well as four condominiums including Tongyeong Marina Resort in Gyeongnam and Weihai Golf & Resort in China.

The acquisition price is estimated to be between 200 billion and 300 billion KRW. Generally, the price is estimated at 7 billion KRW per golf hole, and the fact that it is located in the metropolitan area is known to result in a higher price. In the case of Kumho Resort, the need for remodeling due to aging facilities may lower the acquisition price.

Asiana Airlines has been promoting the sale of its subsidiary Kumho Resort since September last year, when the merger and acquisition (M&A) by HDC Hyundai Development Company (Hyundai Development) fell through, in order to prepare for liquidity crises and strengthen capital.

Asiana Airlines has subsidiaries such as Asiana IDT, Asiana Sabre, and Asiana Airport. It also has grandchild companies including Kumho Resort and Kumho T&I.