Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Cactus, KDB, Mirae Asset displeased at HanaTour
HanaTour Chairman Park Sang-hwan
By Park Jae-hyuk
Travel agency's deal with IMM regarded as inconsiderate
By Park Jae-hyuk
HanaTour's sudden selling of its management rights to IMM Private Equity last month has aroused controversy, as the deal was made while Cactus Private Equity, Korea Development Bank and Mirae Asset Venture Investment were raising a fund for the travel agency, according to sources, Thursday.
HanaTour announced Dec. 23 it would raise 134.7 billion won ($116 million) through third-party allotment of shares.
This allowed IMM to be HanaTour's largest shareholder with a 16.7 percent stake.
According to sources, however, the three asset management companies that had participated in raising the fund for HanaTour were unaware of the travel agency's latest attempt before its announcement.
They had looked for limited partners after they had been selected as co-general partners in the first half of 2019 for raising of a 200 billion won blind-pool fund intended for HanaTour's mergers and acquisitions in Southeast Asia.
HanaTour has sought to expand its overseas presence after suffering falling profits and soaring debt as more Koreans are scheduling trips on their own rather than purchasing tour packages from travel agencies.
The travel agency posted 14 billion won in operating profits in the third quarter of 2019, a 36.1 percent decline from a year earlier.
Its third-quarter sales also dropped 5.4 percent to 599.7 billion won.
“We had a tough year due to unexpected crisis, such as a slump in the tourism industry and changes in the market trends,” HanaTour Chairman Park Sang-hwan said Dec. 12, during an announcement of the company's 2020 business plan.
“By establishing a global platform based on planned tours, we will shift the paradigm of tourism and focus on offering customer-centered products and content.”
Sources said the co-general partners suspended the raising of funds after the travel agency's announcement of the deal with the private equity firm.
According to sources, the co-general partners, since they are the party responsible for investments made to the blind-pool fund and as they regard HanaTour's unwarned decision as inconsiderate behavior, began trying abate limited partners' concerns.