HDC Hyundai Development "Asiana Airlines Merger Filing Completed... Acquisition Under Reassessment"

Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Jiwon] HDC Hyundai Development Company announced on the 3rd that on the afternoon of the 2nd, it received notification from the Russian competition authorities that the merger notification procedure related to the acquisition of Asiana Airlines has been completed, and that discussions are underway to reassess the acquisition situation.

Previously, HDC Hyundai Development Company participated in the acquisition of Asiana Airlines along with Mirae Asset Daewoo, and in December of last year, signed a stock purchase agreement and a new share subscription agreement respectively with Kumho Industrial and Asiana Airlines. Since January of this year, it has been undergoing merger approval procedures, which are part of the acquisition's preconditions, in countries including South Korea starting with the Korea Fair Trade Commission, the United States, China, Russia, Turkey, and Kazakhstan.

With Russia completed, the merger approval procedures have concluded. However, HDC Hyundai Development Company's position is that the seller's representations and warranties must all be true in important respects, and all obligations must be fulfilled, along with other preconditions being simultaneously met, for the obligation to close the transaction to arise.

HDC Hyundai Development Company explained, "Since the contract signing date, several situations have occurred that not only cause significant negative impacts on the acquisition of Asiana Airlines but also severely damage the acquisition value," adding, "We have requested the contracting parties and creditors to reassess the acquisition situation, and discussions regarding this are currently ongoing."

This content was produced with the assistance of AI translation services.