Kumho Asiana to sell stake in Korea Express

By Kang Seung-woo

Kumho Asiana Group plans to sell its affiliate Asiana Airlines’ stake in Korea Express, its official said Friday.

“We are pushing to sell the 23.95 percent stake in Korea Express to improve the financial structure of Asiana Airlines,” the official told The Korea Times.

The airline unit, whose debt ratio stands at 493 percent, has been put under a creditor-led restructuring program.

Korea Development Bank (KDB), the main creditor of Kumho, also plans to sell Daewoo Engineering and Construction’s 24 percent stake in Korea Express, the nation’s largest domestic logistics firm. Asiana Airlines held a closed-door presentation for creditor banks on the same day.

The combined deals are expected to be worth between 1.7 trillion won and 2 trillion won, according to industry sources.

Kumho, the country's eighth-biggest business group by assets, is expected to launch an opening bid soon, but the specific schedule has not been decided yet.

“After talking with creditors, we will set the date for the bid. But it has not been fixed,” the official said.

Among cash-strapped Kumho subsidiaries, Kumho Industrial and Kumho Tire are seeking to undergo a debt-rescheduling program, while Kumho Petrochemical and Asiana Airlines are already under the restructuring plans.

POSCO, Samsung, SK and Lotte are considered potential bidders to purchase the stake.