3 brokerages vie for opportunities in Asiana bid

Asiana Airlines' A350 aircraft / Korea Times file

By Kim Bo-eun

Three brokerages are seeking to take over the ailing Asiana Airlines in a deal that is worth over 1 trillion won ($830 million).

Currently, among four contenders in the preliminary bidding, a consortium between Hyundai Development Company and Mirae Asset Daewoo is considered the strongest. Mirae Asset Daewoo, the country's largest brokerage, is joining as a financial investor.

This refers to an investor who makes investment decisions based on financial returns with no interest in taking over the managerial rights of the invested company.

Aekyung Group, which operates the country's largest budget carrier Jeju Air, is another contender in the preliminary round.

Samsung Securities, which is advising Aekyung in its bid, is set to provide financing if the group wins.

However, it has no interest in putting its own money up for the takeover, according to industry sources. They said that Aekyung is seeking a private equity firm as an investment partner.

KB Securities is known to be advising the private equity fund KCGI, which has formed a consortium with Banker Street, as financial investors in the bidding. KB will likely provide financing if KCGI wins the bid.

The KCGI-Banker Street consortium, meanwhile, needs to find a strategic investor interested in taking over the managerial rights.

This is because Asiana's creditors and financial authorities have banned financial investors alone from the bidding, as they are seeking an entity that will actually take over the airline to continue its operations. This is the strategic investor's role.

The last bidder in the preliminary round is private equity firm Stonebridge Capital.

It is also seeking a strategic investor. Some think that it could ask Aekyung Group to be its strategic investor, as the group needs a financial investor.

Yet there is also possibility that it could join hands with SK Group. The two have been partners in previous deals.

The main bidding for Asiana is set to take place in early November.