20-Dec-2010 10:02 AM

Kumho Asiana to sell stake in Korea Express

Korea Development Bank, Kumho Asiana Group's main creditor, stated Asiana Airlines is seeking to sell its 23.95% stake in Korea Express, South Korea's largest logistics company, to raise cash and improve the financial structure of Asiana Airlines (Chosun/Korea Times/Bloomberg, 17-Dec-2010). The companies are seeking to set a sale price and date by the end of Dec-2010 and announce a public bid in Jan-2011. KDB is also considering the sale of a 23.95% stake in Korea Express held by Daewoo Engineering and Construction, which it recently acquired by creating a private equity fund. Cash-strapped Kumho Asiana Group is South Korea's eighth-largest business conglomerate. Asiana Airlines reportedly has a debt ratio of 493% and has been put under a creditor-led restructuring programme.