Daemyung Sono's holding firm to sell stake in budget carrier amid reorganization efforts
T'way Air aircraft / Courtesy of T'way Air
Daemyung Sono Group, a major Korean condominium and resort company, said Friday its holding company will sell its stake in a local low-cost carrier (LCC) as part of a business reorganization.
Under a 50:50 joint venture, the group's holding firm, Sono International, and local private equity fund JC Partners currently each hold an 11 percent stake in Air Premia.
Sono International and JC Partners will sell their combined 22 percent stake in the budget carrier to local tire distributor Tirebank for 119.4 billion won ($83.2 million) by the end of September, the holding company said in a press release.
"The planned sale of the Air Premia stake is aimed at focusing on operations of T'way Air and enhancing synergies between the low-cost carrier and the group's hotel and resort services," the release said.
Sono International had considered acquiring a larger stake in Air Premia, as it was the only local budget carrier offering long-haul routes to the United States, a company spokesperson said.
Air Premia does not operate domestic flights.
However, the company decided to sell its Air Premia stake as T'way Air plans to launch routes to North America, beginning with Canada in July, the spokesperson said.
In February, Sono International signed a deal to acquire a 26.77 percent stake in T'way Air from its chief and largest shareholder, Yearim — a local publishing company — for 250 billion won.
The acquisition is subject to approval from the antitrust regulator.