Mirae Asset Daewoo Co., Ltd. (KOSE:A006800) and HDC Hyundai Development Company (KOSE:A294870) won the bid to acquire 30.8% stake in Asiana Airlines, Inc. (KOSE:A020560) from Kumho Industrial Co., Ltd. (KOSE:A002990) on November 12, 2019. Mirae Asset Daewoo Co., Ltd. and HDC Hyundai Development Company agreed to acquire 30.8% stake in Asiana Airlines, Inc. from Kumho Industrial Co., Ltd. for approximately KRW 320 billion on December 27, 2019. The buyers will pay KRW 4700 per share for 31% stake. 10% of the consideration will be paid on December 27, 2019 and rest will be paid at the end of the transaction. In a related deal, Mirae Asset Daewoo Co., Ltd. and Hyundai Development Company will also acquire new shares of Asiana Airlines and its six affiliates by investing more than KRW 2 trillion.

The transaction is subject to regulatory approval, approval by lenders and creditors and execution of employment agreement. The transaction has been approved by the Board of Directors of Hyundai Development and Kumho Industrial. The Korea Fair Trade Commission, has approved the transaction on April 3, 2020. As on April 9, 2020, the federal trade commission granted the early termination notice to the transaction. As of April 21, 2020, the transaction is subject to approvals from United States, China, Russia, Kazakhstan, Uzbekistan and Turkey. As on April 28, 2020, the regulatory approval from Russia is pending but the regulators in United States, China, Kazakhstan, Uzbekistan, Turkey and South Korea have approved the merger. As of June 8, 2020, Hyundai Development wants new terms for the acquisition after debt at the debt-ridden carrier increased. On July 3, 2020, HDC Hyundai Development has received approval from Russian authorities for its acquisition of Asiana Airlines Inc. As of August 3, 2020, HDC Hyundai Development Company completed the due diligence. The transaction is expected to close on April 30, 2020. As of April 21, 2020, transaction is expected to complete by the end of April 2020. Hyundai Development Company is expected to delay the legal procedures finalizing the deal until the second half of this year. Kumho plans to complete the sale by the end of this year.

As of April 29, 2020, the transaction will be finalized after May, 2020 as foreign regulator has yet to approve the transaction. As of June 9, 2020, the transaction is expected to close on December 27, 2020. As of August 10, 2020, HDC Hyundai Development to complete the deal by August 11, 2020. As on August 13, 2020, HDC considered 12-week additional due diligence essential. Creditors made it clear that it cannot be asked to wait until the end of the year and If HDC Hyundai Development sticks to its original 12-week due diligence, the buyout is no longer savable. As of September 2, 2020, HDC Hyundai Development Company once again demanded another round of due diligence on Asiana, which was already rejected by the creditors and Kumho Industrial. The ministers handling the Asiana deal and officials in charge of the state fund set up for the airline and other backbone industries are scheduled to have separate meetings on September 11, 2020. The proceeds from the stake sale will be mainly spent to pay debts and invest in new businesses.

Credit Suisse acted as the manager for the sale. Anse Accounting Firm acted as evaluator in the transaction. Samjong KPMG Advisory Inc. acted as due diligence provider to Hyundai Development Company. Ernst & Young, Korea acted as due diligence provider to Asiana Airlines Inc.

Mirae Asset Daewoo Co., Ltd. (KOSE:A006800) and HDC Hyundai Development Company (KOSE:A294870) cancelled the acquisition of 30.8% stake in Asiana Airlines, Inc. (KOSE:A020560) from Kumho Industrial Co., Ltd. (KOSE:A002990) on September 11, 2020. Mirae Asset Daewoo Co., Ltd. and Hyundai Development Company demanded renegotiations with Kumho and the creditors over acquisition terms due to the worsening virus impact on Asiana Airlines, Inc., however, the parties failed to reached an agreement resulting in termination of the deal.