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Preferred bidder trying to renegotiate Asiana Airlines deal
South Korean firm Hyundai Development Company is reportedly trying to renegotiate terms on a planned stake purchase of Asiana Airlines.
HDC along with partner Mirae Asset Daewoo was given preferred bidder status last year before the Covid-19 pandemic.
The deadline has since passed due to the pandemic.
According to local media reports it wants to renegotiate the deal as Asiana’s debt has increased significantly since then.
The original deal was worth about $2 billion for a 31% stake.
It is thought Asiana’s total debt is now about $11 billion.
According to the Korea Times, Asiana’s creditors are willing to engage with HDC over new acquisition terms.
"HDC needs to propose what acquisition terms it wants to be changed first before related parties begin talks over the deal," said main creditor, state-run Korea Development Bank.
The pandemic has led to several failed travel industry takeover transactions, with some leading to lawsuits, and several more being renegotiated.
An affiliate of Mirae was sued by China’s Ambang Insurance for failing to close a $5.8 billion deal to purchase a portfolio of luxury US hotels.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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