Korean Air moved up the transaction closing date for its acquisition of Asiana Airlines shares to Dec. 11 from Dec. 20 in a final sprint to expedite the completion of the four-year takeover process.
Under the announcement made in a regulatory filing, the country’s flag carrier will pay the remaining 800 billion won ($571 million) of the total acquisition price of 1.5 trillion won by Dec.11 to conclude the deal to incorporate Asiana as its subsidiary.
Korean Air will own 63.9 percent of Asiana to become the largest stakeholder.
The accelerated schedule was decided as the country’s largest airline obtained final approval from the European Union last week, four years after it initiated the merger plan.
It is now awaiting a pending review by the U.S. Department of Justice. If the United States doesn’t contemplate legal action against the acquisition, it is considered approved.
Asiana will run as a subsidiary for two years before it is fully integrated by the end of 2027. The relocation of the workforce and the normalization of its financial structure will be done during the period.
Korean Air shares stayed flat to close at 25,650 won on Tuesday, while Asiana Airlines rose 4.4 percent to 10,440 won.
BY SARAH CHEA [chea.sarah@joongang.co.kr]
