KCGI Opposes Hanjin Kal's Acquisition of Asiana... "Suspicions Over Management's Status Preservation"

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] KCGI, an activist private equity fund (PEF) that has been in conflict with Chairman Cho Won-tae over the management rights of Hanjin Group, expressed a negative stance on the speculation that Hanjin KAL would acquire shares of Asiana Airlines on the 13th, stating that it could lead to customer damage and losses for shareholders and creditors.

On the same day, KCGI released a statement titled "Hanjin KAL's Position on the Acquisition of Asiana Airlines," saying, "There is a reasonable suspicion that this is not a measure to preserve the current management's position but rather disregards the rights of other shareholders."

KCGI emphasized, "Incorporating Asiana Airlines, which is experiencing the worst financial crisis without concrete consideration of industrial synergy and value, into Hanjin Group could lead to customer damage, including employee employment and aviation safety issues, as well as losses for shareholders and creditors. A thorough review and transparent consultation process must be conducted."

They added, "Hanjin KAL can secure more than 1 trillion won through exercising previously issued stock warrants and selling non-core assets," pointing out, "The company currently in need of external financial support is not Hanjin KAL but Korean Air."

KCGI stated, "As the de facto largest shareholder of Hanjin KAL, the shareholder coalition respectfully requests in-depth discussions, including meetings with creditors, government authorities, and Hanjin KAL management," and said, "We are prepared to openly consider all ideas and measures to protect social value through restructuring the aviation industry and to safeguard the rights and interests of creditors and shareholders."

According to financial sources, the Korea Development Bank is reviewing a plan to invest funds in Hanjin KAL through a third-party allotment capital increase, and for Hanjin KAL to acquire the Asiana Airlines shares (30.77%) held by Kumho Industrial. Regarding this, the Korea Development Bank stated, "We are reviewing various options, but nothing has been finalized."

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