[Click eStock] Asiana Cargo Division Sale Consortium Selected... Uncertainty Eliminated

Hana Securities noted on the 18th that the selection of Air Incheon as the preferred negotiator for the acquisition of Asiana Airlines' cargo division is expected to accelerate Korean Air's acquisition of Asiana Airlines.

The day before, Air Incheon was selected as the preferred negotiator for Korean Air's acquisition of Asiana Airlines' cargo division. The acquisition price is reported to be around 450 billion to 500 billion KRW. The consortium, consisting of the major shareholder Socios Aviation (80% stake), Inhwa Precision, and Korea Investment Partners, is expected to proceed with the acquisition.

Researcher Andohyun explained, "The separate sale of Asiana Airlines' cargo division is a prerequisite for Korean Air's acquisition of Asiana Airlines," adding, "As of 2019, the combined market share of Korean Air and Asiana Airlines on European and US cargo routes reached 70% (foreign airlines 30%)."

He further stated, "Regarding this corporate merger, Europe has given conditional approval, and the US is currently conducting an antitrust review. Therefore, if the sale of Asiana Airlines' cargo division is finalized, it will positively influence the US authorities' approval decision."

He continued, "Currently, Korean Air's acquisition of Asiana Airlines only awaits approval from US authorities," adding, "The elimination of uncertainties related to Korean Air's acquisition is viewed positively as it removes valuation discount factors."

Meanwhile, Air Incheon's cargo routes are concentrated in nearby regions such as China, Japan, Vietnam, and Singapore, leading to positive evaluations that this acquisition will expand the air cargo network and complement the portfolio. However, the possibility of introducing additional long-haul cargo aircraft remains a key issue, and attention should be paid to whether additional funding will be secured.

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