Korean Air’s acquisition of Asiana surpasses’anti-national pension’

Input 2021.01.06 09:37 | Revision 2021.01.06 10:20

Provisional amendments to the articles of association passed… Promotion of paid-in capital increase

Korean Air (003490)The amendment to the articles of incorporation to increase the total number of issued shares was passed at the extraordinary general shareholders’ meeting on the 6th. The National Pension, the second largest shareholder with 8.11% of Korean Air’s shares, announced its intention to oppose the amendment of the articles of incorporation, but it was approved as the original plan. Korean Air will comply with the revised articles of association Asiana Airlines (020560)Promote a paid-in capital increase to take over.

Korean Air held an extraordinary general shareholders’ meeting at the headquarters of Korean Air in Gangseo-gu, Seoul at 9 am on the day, and passed an amendment to the articles of incorporation to change the total number of issued shares from 250 million to 700 million. Among Korean Air’s total number of 175,32 million,466 stocks with voting rights, 55.73% of 9772,2790 shares attended, of which 69.98% was in favor. The amendment of the articles of incorporation was a special resolution, and the approval of at least two-thirds of the voting rights of shareholders present at the shareholders’ meeting and at least one-third of the total number of issued stocks was a condition for approval.

The National Pension Trustee Responsibility Committee announced on the previous day that it would exercise the right to vote against the amendment to Korean Air’s articles of incorporation. This was because shareholder value could be damaged. However, it did not prevent the change of the articles of association on this day. It is interpreted that the majority of minority shareholders and employee stock ownership associations voted in favor. Korean Air is the largest shareholder Hanjin Knife (180640)And related parties hold 31.13%, and the second largest shareholder, the National Pension Plan, owns 8.11%. In addition, Korean Air employee stock ownership (6.39%) and Credit Switzerland (3.75%) are major shareholders.

As Korean Air’s amendment to the articles of incorporation was passed on that day, it is expected that the two airlines’ integration work will also cruise. Korean Air plans to promote a paid-in capital increase to shareholders worth 2.5 trillion won, and 400 billion won of the paid-in capital increase will be paid as an intermediate payment to Asiana Airlines.

Previously, Korean Air paid 300 billion won of 800 billion won borrowed from Hanjin Kal to Asiana Airlines as a down payment for the acquisition on the 3rd of last month. Afterwards, Korean Air will pay 800 billion won, excluding down payment and intermediate payments, out of Asiana Airlines’ 1.5 trillion won worth of paid-in capital increase on June 30. After acquiring shares, Korean Air will become the largest shareholder with 63.9% of Asiana Airlines.

The two airlines are created as one airline through an integrated process (PMI) after review and acquisition by domestic and foreign competition authorities. Korean Air President Woo Ki-hong said at a press conference last November, “As soon as possible, the acquisition may be completed within two years.”