Asiana M&A Korean Air’Believe and Go’… Secured 3 trillion live ammunition with paid-in capital increase

Korean Air succeeded in a paid-in capital increase of over 3 trillion won and once again showed off its potential as the nation’s largest airline.

It is interpreted as gaining market trust as it is expected to grow into a global airline in the post-Covid-19 era through Asiana Airlines’ M&A. The industry predicts that this large-scale “real ammunition” will help solve the liquidity problem of Korean Air and improve its constitution.

Korean Air announced on the 8th that the subscription rate for paid-in capital increase for employee stock ownership associations and old shareholders recorded 104.85% on the 4th and 5th of this month. Korean Air secured a total of 3,3159 billion won through the capital increase.

Stocks to be issued are 173,711,112 shares, and over-subscribed shares are 2,087,2966 shares. Subscribers who participated in oversubscription will be allocated shares obtained by subtracting less than 1 share from the number of shares calculated by multiplying the excess subscription share by the excess subscription allocation ratio (59.63%).

Asiana Airlines’ M&A, which raised liquidity issues due to a successful paid-in capital increase, is also expected to cruise. On June 30, Korean Air plans to take over the stake in Asiana Airlines by participating in a paid-in capital increase of KRW 1.5 trillion by Asiana Airlines. In fact, Korean Air will use 1.5 trillion won of the amount secured this time to acquire Asiana Airlines. The remaining KRW 1,815.9 billion is spent on debt repayment from April to December.

Korean Air is not complacent, but is planning to increase its stamina by working harder to improve its performance. It is through business expansion, focusing on cargo, such as transporting the Corona 19 vaccine. Based on this, Korean Air also recorded an operating surplus of 238.3 billion won despite the worst crisis in history of Corona 19.

A Korean Air official said, “The success of the capital increase is based on the market’s confidence in the future growth potential of Korean Air.”

On the other hand, for single orders that occurred after oversubscription, the general public offering subscription will proceed on the 9th to 10th of this month. The expected date for listing of new shares is the 24th of this month.