Shareholders to announce 2nd bidding for KAI sale

Major shareholders of Korea Aerospace Industries Ltd. (KAI) plan to make a second public notice of bidding this week to sell a 41.75 percent stake in the aircraft manufacturer, Korea Finance Corp. said Sunday.

The state-run Korea Finance Corp., which is in charge of the sale as the biggest shareholder of KAI with a 26.41 percent interest, will announce the second bidding on Monday, it said. The deadline to submit preliminary bids is Sept. 27.

Other major shareholders include Hyundai Motor Co. and Doosan Group. The stake to be put up for sale is worth around 1.4 trillion won ($1.3 billion).

The announcement on the second bidding comes after a first preliminary bid fell through last month due to a lack of competition, as required by law.

Korean Air Lines Co., an affiliate of Korea's 10th-biggest business group Hanjin, was the sole bidder in the first bidding for the 41.75 percent stake.

The leading carrier has previously said its proposed takeover could create a synergy as the flagship carrier seeks to eventually build its own airplanes as part of its growth strategy.

However, Cho Yang-ho, chairman of the Hanjin group, has said his group will not take over KAI if the deal price is set based on KAI's recent share prices, noting KAI's price is overvalued, according to Korean Air.

KAI shares closed at 26,100 won on the main Seoul bourse on Friday, up 0.38 percent from the previous close. (Yonhap)