Acquisition of 46.26% Stake in T'way Holdings
Merger with Air Premia Also in Focus after Acquisition
Synergy Expected with Resort Business through Linked Products
T'way Air is joining the Daemyung Sono Group. Daemyung Sono Group, the nation's top hotel and resort company, is making a full-scale entry into the aviation industry through the acquisition of T'way Air.
On the 26th, Daemyung Sono Group announced that it signed a Stock Purchase Agreement (SPA) to acquire 46.26% of T'way Holdings shares held by Yerimdang (including related parties) for 250 billion KRW, securing additional shares and management rights of T'way Air.
T'way Air has a governance structure of 'Yerimdang → T'way Holdings → T'way Air,' with T'way Holdings being the largest shareholder holding 28.02% of T'way Air shares.
Daemyung Sono Group previously invested about 176 billion KRW last year to acquire 26.77% of T'way Air shares and has now acquired shares in T'way Holdings. As a result, it has secured a total of 54.79% of T'way Air shares, gaining management control.
Along with this acquisition, Daemyung Sono Group presented its future vision including ▲strengthening aviation safety and maintenance capabilities and expanding professional personnel ▲increasing profitability ▲creating synergy between the leisure and aviation industries.
A Daemyung Sono Group official stated, "We will prioritize 'aviation safety,' which cannot be emphasized enough, as the top value in corporate management," adding, "To this end, we will further strengthen investments in safety, including strict operational procedures and compliance with international safety standards, as well as aircraft maintenance and inspection systems."
He continued, "Unlike other low-cost carriers (LCCs), T'way Air operates medium- and long-haul routes including Europe, so we will elevate the capabilities of pilots, cabin crew, maintenance personnel, and customer service to the industry's highest level."
With Daemyung Sono Group's acquisition of T'way Air, significant changes are expected in the domestic LCC market. Daemyung Sono Group has previously indicated the possibility of acquiring management rights of another LCC, Air Premia, and merging it with T'way Air. Through these two LCCs, which have strengths in long-haul routes, they aim to become the second Asiana Airlines.
Additionally, synergy with Daemyung Sono Group's hospitality business is anticipated. Daemyung Sono Group operates 20 hotels and resorts domestically, including Sol Beach Namhae, scheduled to open this year. It also has overseas operations in the U.S., France, and Hawaii. Based on this, they plan to create cross-industry synergies through linked product development, promotions, and marketing via travel agencies. They will also pursue joining a major airline alliance to secure a global network and expand their business scope.
Daemyung Sono Group plans to change T'way Air's name to reflect the group's identity, 'SONO.' Chairman Seo Jun-hyuk of Daemyung Sono Group said, "We will become a safer and more reliable airline," and added, "We will grow into a global airline that satisfies both customers and employees through stable management."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
