ID :
191761
Wed, 06/29/2011 - 11:47
Auther :
Shortlink :
https://oananews.org//node/191761
The shortlink copeid
Kumho Asiana to speed up restructuring after sale of logistics arm
SEOUL, June 29 (Yonhap) -- Kumho Asiana Group, a cash-strapped South Korean conglomerate, said Wednesday that its restructuring efforts will likely gain traction following the sale of its logistics arm at a higher-than-expected price.
Creditors of Korea Express Co. picked a consortium led by food and entertainment conglomerate CJ Group Tuesday as the prime bidder for a controlling 37.6 percent stake in the country's top logistics company, owned by Kumho Asiana's two subsidiaries, Asiana Airlines Inc. and Daewoo Engineering & Construction Co.
"With the successful sale of Korea Express, we cleared a big hurdle to our self-rescue efforts," said an official at Kumho Asiana. "The deal is expected to improve our liquidity conditions."
CJ Group made an aggressive bet on the logistics firm, outbidding a consortium of top steelmaker POSCO and Samsung SDS Co., an affiliate of South Korea's top conglomerate Samsung Group.
Analysts expect that the sale price may be set at 210,000 won (US$195) per share, much higher than the market price of Korea Express, which closed at 104,500 won on the Seoul main bourse on Wednesday, down 5.86 percent from Tuesday.
The deal is likely to give an estimated capital gain of 170.2 billion won to the group, which has been suffering from a severe cash crunch for nearly a year, sparked by its purchase of major local builder Daewoo Engineering & Construction in 2006.
Kumho Asiana's liquidity crisis deepened after it faced a cash call worth some 4 trillion won from financial investors in the builder, who exercised their rights to sell shares in the builder back to the group at above-market prices at the end of last year.
Kumho Asiana's two other subsidiaries -- Kumho Tire Co. and Kumho Industrial Co. Ltd. -- have been put under a creditor-led debt restructuring program since early 2010.
The company said the sale of Korea Express will help the companies complete the debt restructuring plan, underpinned by good showings by its affiliate firms.
"We've significantly downsized the company. Now we need to raise productivity and get results," said the official.
Kumho Tire, South Korea's second-largest tire maker, swung to a profit last year from a loss in 2009, while Asiana Airlines, the country's second-largest air carrier, posted 236 billion won in net profit last year.
Shares of Kumho Tire rose 1.22 percent to 16,550 won on the Seoul bourse on Wednesday, and Asiana Airlines fell 1.46 percent to 10,100 won.
brk@yna.co.kr
Creditors of Korea Express Co. picked a consortium led by food and entertainment conglomerate CJ Group Tuesday as the prime bidder for a controlling 37.6 percent stake in the country's top logistics company, owned by Kumho Asiana's two subsidiaries, Asiana Airlines Inc. and Daewoo Engineering & Construction Co.
"With the successful sale of Korea Express, we cleared a big hurdle to our self-rescue efforts," said an official at Kumho Asiana. "The deal is expected to improve our liquidity conditions."
CJ Group made an aggressive bet on the logistics firm, outbidding a consortium of top steelmaker POSCO and Samsung SDS Co., an affiliate of South Korea's top conglomerate Samsung Group.
Analysts expect that the sale price may be set at 210,000 won (US$195) per share, much higher than the market price of Korea Express, which closed at 104,500 won on the Seoul main bourse on Wednesday, down 5.86 percent from Tuesday.
The deal is likely to give an estimated capital gain of 170.2 billion won to the group, which has been suffering from a severe cash crunch for nearly a year, sparked by its purchase of major local builder Daewoo Engineering & Construction in 2006.
Kumho Asiana's liquidity crisis deepened after it faced a cash call worth some 4 trillion won from financial investors in the builder, who exercised their rights to sell shares in the builder back to the group at above-market prices at the end of last year.
Kumho Asiana's two other subsidiaries -- Kumho Tire Co. and Kumho Industrial Co. Ltd. -- have been put under a creditor-led debt restructuring program since early 2010.
The company said the sale of Korea Express will help the companies complete the debt restructuring plan, underpinned by good showings by its affiliate firms.
"We've significantly downsized the company. Now we need to raise productivity and get results," said the official.
Kumho Tire, South Korea's second-largest tire maker, swung to a profit last year from a loss in 2009, while Asiana Airlines, the country's second-largest air carrier, posted 236 billion won in net profit last year.
Shares of Kumho Tire rose 1.22 percent to 16,550 won on the Seoul bourse on Wednesday, and Asiana Airlines fell 1.46 percent to 10,100 won.
brk@yna.co.kr
