Korean Air President Woo Ki-hong is tapping the gavel at an extraordinary general shareholders’ meeting held at Korean Air headquarters in Gangseo-gu, Seoul on the morning of the 6th, after proposing an agenda to change the articles of incorporation to increase the total number of issued shares. Reporter Seo Jae-hoon
Korean Air has safely passed the first gateway to take over Asiana Airlines. Despite the opposition from the national pension, the second largest shareholder, some amendments to the articles of incorporation to increase the total number of stock issuance were passed at the extraordinary general shareholders’ meeting held on the 6th.
As a result, Korean Air has completed preparations for securing funds for Asiana Airlines’ acquisition through a paid-in capital increase in March. However, it is difficult to guarantee the birth of a super-large airline. This is because the possibility of turbulence that will appear in the business combination examination cannot be excluded.
Ready for paid-in capital increase… March intermediate payment and June balance payment
Korean Air announced that the amendment to the articles of incorporation to increase the total number of issued shares from 250 million to 700 million by holding a temporary shareholders’ meeting at the headquarters in Gonghang-dong, Gangseo-gu, Seoul, was approved with 69.98% of the stocks present. As the total number of shares issued has increased, Korean Air will be able to make a capital increase for its acquisition of Asiana Airlines. In mid-March, Korean Air plans to issue a paid-in capital increase of 2.5 trillion won by allocation to shareholders, and Hanjin Kal, the largest shareholder, plans to participate in the paid-in capital increase by investing about 29% of the total size, or 730 billion won. Korean Air, which paid 300 billion won to Asiana Airlines as a down payment on the 3rd of last month, plans to pay 400 billion won as an intermediate payment out of the funds secured from the paid-in capital increase. On June 30th, if Asiana Airlines pays 800 billion won in a paid-in capital increase of 1.5 trillion won to a three-party allocation, Korean Air will become the largest shareholder with 63.9% of Asiana Airlines.
Korean Air and Asiana Airlines passenger planes are erected at Incheon International Airport on the afternoon of the 6th, when Korean Air decided to increase the total number of issued shares for a paid-in capital increase. yunhap news
Amid the monopoly controversy, passing the business combination examination is a homework
Korean Air is preparing for the launch of a super-large airline along with securing the acquisition fund. With the goal of finalizing the establishment of a post-merger integration (PMI) strategy that can maximize the synergy effect of integration by mid-March, an acquisition committee consisting of working groups for each field such as planning, finance, passengers, and cargo is also formed. In operation.
The problem is the monopoly controversy. It is also possible to break this as a pretext during the business combination review process. Korean Air, which plans to submit a business combination report to domestic and foreign competition authorities by the 14th of this month, is in a position that the merger and acquisition has nothing to do with monopoly. At a press conference last month, Korean Air President Woo Ki-hong said, “After the company merges, the total slot share of Incheon Airport’s passenger routes is 38.5%, so there will be no monopoly issue.”
However, the National Assembly Legislative Investigation Office pointed out that, in a recently published report on issues and issues related to mergers and acquisitions (FSC), “the concern of monopoly by route should be addressed. It directly refuted Korean Air’s claim that it was not a monopoly based on the total slot share. The report said, “The major competing authorities, such as the United States and the European Union (EU), generally adopt an approach of defining separate markets for each route.” Some of the international routes may have monopoly concerns.”
In addition, a case where the Fair Trade Commission meticulously examined the monopoly at the end of last year, asking for the sale of Yogiyo, which had been operated by DH, as a condition to take over the graceful brothers of Delivery Hero (DH) after a year-long review. It is also expected to act as a burden for Korean Air.
Kim Kyung-jun reporter [email protected]
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