Hyundai Development Company (HDC) has won the contest to become the preferred bidder to acquire a controlling stake in South Korea’s Asiana Airlines.
A consortium of Hyundai and Mirae Asset Daewoo faced off against two rival bids from Jeju Air parent Aekyung Group and Korea Corporate Governance Improvement.
HDC says it has some synergies with the commercial aviation industry, such as its in-flight duty-free division.
"We believe acquisition of Asiana fits HDC Group’s sustainable business growth strategy and we will support Asiana Airlines to have the best competitiveness and the highest-level financial solidity," HDC Group chairman Chung Mong-gyu.
HDC will inject about $1.7 billion in new shares to reduce its debt.
"Acquisition of Asiana will be a step forward for us to become a mobility group," he said.
Chung said the Asiana name will remain for now as it has good brand value and recognition.
