Seongjeong Co., Ltd. Acquires Eastar Jet for 110 Billion Won

[Asia Economy Reporter Kang Nahum] Seongjeong Co., Ltd., a golf course management and real estate rental company, acquired Eastar Jet for 110 billion KRW.

On the 24th, Seongjeong and Eastar Jet signed a merger and acquisition (M&A) investment contract at the Seoul Bankruptcy Court, attended by Kim Yusang and Jung Jaeseop, co-administrators of Eastar Jet, and Hyung Donghoon, CEO of Seongjeong.

The acquisition price is approximately 110 billion KRW, and Seongjeong will hold shares of Eastar Jet through a third-party allotment paid-in capital increase. Seongjeong paid a contract deposit of 11 billion KRW and plans to pay the remaining balance in accordance with the capital increase implementation.

The investment contract includes a clause to maintain employment of Eastar Jet employees for five years. Reinstatement of dismissed employees will be considered later depending on management conditions and is not specified in the contract.

Eastar Jet plans to submit a rehabilitation plan, including the utilization of the acquisition funds, to the court by the 20th of next month.

With this, Eastar Jet completes the acquisition process four months after entering corporate rehabilitation procedures in February this year. It is also one year and nine months since it entered an emergency management system in September 2019 and began pursuing a sale.