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Asiana Airlines headquarters. (Photo = Asiana Airlines) |
[Alpha Biz= Reporter Paul Lee] Jeju Air, South Korea's No. 1 low-cost carrier (LCC) industry, is considering joining hands with MBK Partners, a private equity fund (PEF) operator, to acquire Asiana Airlines' cargo division. It is predicted that the pre-acquisition game will change depending on whether or not to cooperate with MBK Partners, which owns trillions of won funds.
According to The Korea Economic Daily reports on the 8th, Jeju Air is discussing cooperation with MBK Partners' Special Drilling (SS) Fund in the acquisition of Asiana Airlines' cargo division. Jeju Air, along with Air Premia, Eastar Jet and Air Incheon, was previously selected as a candidate (shortlist) for the business division. The acquisition price of Asiana Airlines' cargo division is estimated at around 500 billion won.
MBK Partners has been pushing for cooperation, judging that Jeju Air, ranked LCC 1, will be able to solidify its overwhelming position if it secures Asiana's cargo network in addition to the existing passenger sector. If the negotiations progress, the company plans to invest through the second SS fund worth 2.1 trillion won created in 2021.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
