[딜사이트 김진배 기자] As Asiana Airlines confirms the sale of its cargo division, industry interest in the appropriate sale price is increasing. While the selling side is known to want about 800 billion won, the original buyers who are interested in the acquisition are maintaining their position that they cannot spend more than 300 billion won. Attention is being paid to whether the two sides can narrow the gap of about 500 billion won.
According to the Financial Supervisory Service’s Electronic Disclosure System on the 3rd, Asiana Airlines held a board meeting the day before and decided to sell its cargo division. After the announcement, Korean Air immediately submitted a corrective action plan containing the above contents to the European Commission (EC). The EC is expected to review whether to approve the business combination of Korean Air and Asiana Airlines starting next week.
As Asiana Airlines decided to separate its cargo division, love calls from low-cost carriers (LCCs) seeking to increase corporate value are continuing. Eastar Jet, Air Premia, T’way Air, and Air Incheon submitted letters of intent (LOI) to the preliminary bid for the Asiana Airlines cargo division conducted by Korean Air last month. Although they did not participate in the preliminary bidding, large private equity fund (PEF) managers and domestic conglomerates are also known to be keeping an eye on this deal.
Although multiple companies are showing interest, the consensus in the industry is that in order for an actual deal to be concluded, the sale and acquisition sides need to first meet the price level. The analysis is that unless a new buyer proposes a much higher price than other prospective buyers, there is a high possibility that the amount currently being discussed by the acquisition side will eventually reach the negotiation table.
It is known that most LCCs that have submitted LOIs are considering an acquisition price of approximately 200 to 300 billion won. The position is that the equity acquisition funds cannot be excessively allocated because the cargo division must take on a significant amount of debt and additional funds, such as the introduction of aircraft, are needed even after the acquisition.
On the other hand, the selling side is said to have set the cargo division valuation at at least 700 billion to 800 billion won. The company’s performance is large enough to exceed 1 trillion won in annual sales, and it is highlighting its strengths as a profitable business that has consistently generated profits even during the COVID-19 pandemic.
An official in the IB industry said, “The difference in the amounts currently being discussed by both sides is so large that difficulties are expected in the negotiations. However, there is a clear reason why Asiana Airlines needs to sell its cargo division, and the prospective buyer also wants to increase value.” “Because this is a time when bold bets are needed, we expect the sale price to ultimately be decided between 400 billion and 600 billion won, with each company giving up some amount.”
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2023-11-05 21:30:19
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