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Company News

S.Korea's Hanjin Group reviews buying Asiana Airlines - report

SEOUL, Nov 12 (Reuters) - South Korea’s Hanjin Group, owner of the nation’s largest airline Korean Air Lines Co Ltd , is in talks to acquire debt-ridden Asiana Airlines Inc, local media reported on Thursday, citing unnamed investment banking sources.

The Korea Economic Daily said Hanjin Group has been in talks with Korea Development Bank (KDB) and will be submitting a letter of intent to the bank next as early as next week.

Hanjin Group told Reuters nothing has been decided, while Asiana Airlines said they were not aware of such talks.

Asiana’s lead creditor KDB said in an emailed statement talks with Hanjin Group was one of the options under consideration but also said that nothing had been decided.

A planned sale of Asiana Airlines, South Korea’s second-largest carrier, collapsed in September.

Hyundai Development Co and brokerage Mirae Asset Daewoo had agreed in December 2019 to purchase control of Asiana Airlines for about 2.5 trillion won ($2.25 billion), but they called for better terms after the airline’s debt surged after the coronavirus pandemic hit travel demand.

$1 = 1,112.5800 won Reporting by Heekyong Yang. Writing by Joori Roh; editing by Barbara Lewis

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