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Korean Air to establish holding company

25-Mar-2013 11:37 AM

Korean Air Lines (KAL), an affiliate of Hanjin Group announced (22-Mar-2013) a decision was reached at its board of directors meeting on 22-Mar-2013 to create a holding company for Korean Air in coming months, splitting the company into Hanjin KAL Holdings and Korean Air. The decision to split-off Korean Air to create a holding company will enhance transparency of its corporate governance. The process is planned to be completed on 01-Aug-2013. Based on KAL’s net assets, it will be divided by a ratio of 0.1945968:0.8054032, with Hanjin KAL Holdings taking the former portion. Hanjin KAL Holdings will be responsible for the management of the company’s business investments, Hanjin Group affiliates and intellectual property rights. Korean Air will focus on the aviation business which includes air transport, aerospace, catering, in-flight duty free sales and the limousine business. Transfer of assets to Hanjin KAL Holdings will include cash of KRW100 billion (USD89.7 million), Hanjin Group affiliate shares of KRW512.1 billion (USD459.7 million), KRW91.1 billion (USD81.8 million) in real estate, KRW52.7 billion (USD47.3 million) in available-for-sale securities and also borrowings of KRW270 billion (USD242.4 million). [more – original PR – Korean]