Daemyung Sono Acquires T'way Air... Board of Directors to Be Appointed at Shareholders' Meeting on the 24th

Fair Trade Commission: "No Factors Restricting Competition in Business Combination"
Next T'way CEO Likely to Be Chosen from Three Candidates Recommended by Daemyung Sono Group

Hotel and resort company Daemyung Sono Group has received approval from the Fair Trade Commission, allowing it to fully acquire management control of T'way Air.

According to the airline industry and other sources on June 11, the Fair Trade Commission notified Sono International, the holding company of Daemyung Sono Group, as well as T'way Air and its parent company T'way Holdings, of the results of its business combination review the previous day.

Earlier, in February, Sono International signed a stock purchase agreement (SPA) to acquire all of the shares in T'way Holdings (a total of 52.34 million shares, representing a 46.26% stake) held by Yerimdang, the previous largest shareholder of T'way Air, and the Yerimdang owner family, for 250 billion KRW. Afterward, Sono International applied for a business combination review with the Fair Trade Commission and had been awaiting the results.

It is reported that, in its approval review, the Fair Trade Commission determined that there were no factors restricting competition through the business combination, considering T'way Air's overall market share and other factors.

With this approval, Daemyung Sono Group plans to form a new board of directors at an extraordinary general meeting of T'way Air shareholders scheduled for June 24. Nine candidates, including Daemyung Sono Group Chairman Seo Junhyuk, will be appointed as directors. Jung Honggeun, who has served as CEO of T'way Air for the past ten years, is expected to be replaced.

The next CEO is expected to be selected from among three new inside director candidates with Korean Air backgrounds, recommended by Daemyung Sono Group. These candidates are Lee Sangyun (51), Head of the Aviation Business Task Force at Sono International; Ahn Woojin (50), Head of Sales and Marketing; and Seo Dongbin (49), Aviation Business Task Force Executive.