Singapore Airlines confirmed it has opened talks to take a stake in South Korean budget carrier Jeju Air.
South Korean media reported SIA is talking with local company Aekyung Group to acquire about 20% of Jeju Air.
Aekyung Group currently holds more than 86% of Jeju Air.
Both parties reportedly began discussions late last year and are close to agreeing a price.
“Singapore Airlines wishes to confirm that discussions have taken place on a possible equity investment in the airline,” SIA said in a filing with the Singapore Stock Exchange.
“These discussions may not result in a transaction. Singapore Airlines will make further public announcements as necessary.”
Low cost carrier Jeju Air is planning an initial public offering later this year which would make it the first South Korean low cost carrier to be publicly listed.
