Fair Trade Commission: "No Competition-Restricting Factors in Business Combination"
Next T'way Air CEO Likely to Be Chosen from Three Candidates Recommended by Daemyung Sono
Daemyung Sono: "Maximizing Synergy by Combining Strengths in Aviation and Leisure"
Hotel and resort company Daemyung Sono Group has received approval from the Fair Trade Commission, allowing it to fully acquire management rights of T'way Air.
According to the airline industry and other sources on June 11, the Fair Trade Commission notified each company of its decision to approve the business combination involving Sono International, the holding company of Daemyung Sono Group, T'way Air, and its parent company T'way Holdings, the previous day.
Previously, in February, Sono International signed a share purchase agreement (SPA) to acquire all shares (a total of 52.34 million shares, representing a 46.26% stake) in T'way Holdings from Yerimdang and the Yerimdang owner family, who were the former largest shareholders of T'way Air, for 250 billion won. Sono International then applied for a business combination review with the Fair Trade Commission and has been awaiting the results.
It is reported that the Fair Trade Commission, in its approval review, determined that there were no competition-restricting factors resulting from the business combination, taking into account T'way Air's market share and other factors in a comprehensive manner.
Daemyung Sono Group plans to enhance T'way Air's aviation safety and financial soundness, and to maximize synergy by organically combining the strengths of its hotel and resort business with those of the airline business. The group will also sequentially proceed with key regulatory procedures, including the Ministry of Land, Infrastructure and Transport's review of major shareholder eligibility and approval for changes to the air transport business license.
At the extraordinary general meeting of T'way Air shareholders scheduled for June 24, a new board of directors will be established and the company's management direction will be concretized. Nine candidates, including Daemyung Sono Group Chairman Seo Junhyuk, will be appointed to the board.
Jung Honggeun, who has served as CEO of T'way Air for the past 10 years, is expected to be replaced. The next CEO is likely to be selected from among three new inside director candidates with Korean Air backgrounds, recommended by Daemyung Sono Group: Lee Sangyoon (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.
A Daemyung Sono Group representative stated, "With the Fair Trade Commission's approval of the business combination, we will begin full-scale management of T'way Air and add aviation to our existing business portfolio to drive sustainable growth," adding, "By combining the strengths of our leisure and aviation business divisions, we aim to become a leading global hospitality company in the leisure industry."
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