SEOUL: Korean Air Lines Co on Monday said it will spend 1.8 trillion won (US$1.62 billion) to become the largest shareholder of indebted Asiana Airlines Inc, in a deal that would create the world’s 15th biggest carrier.
The suitor plans to issue 2.5 trillion won worth of shares next year to fund the deal with buyers including its own parent, Hanjin Kal.
It did not specify how it would spend the remainder. Asiana’s state-run creditor Korea Development Bank (KDB) said the 2.5 trillion won will include liquidity and funds to conduct integration efforts such as the consolidation or closure of redundant businesses.
KDB also said it will invest 800 billion won in Hanjin Kal.
Korean Air is…
