April 20, 2024

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[THE INVESTOR] Asiana Airlines said on Dec. 26 its stake in its affiliate Air Busan will stand at 44.17 percent after the budget carrier’s planned stock market debut, nearly unchanged from the current level.

As the largest shareholder it currently holds a 46 percent stake in Air Busan, which is set to go public on the country’s main KOSPI bourse on Dec. 27. 

Market insiders have long expected the parent Asiana Airlines to unload part of its stake in the low-cost carrier to secure funds to improve its financial status.

Asiana Airlines has struggled with debt which surpassed 4 trillion won (US$3.55 billion) as of the end of last year. It had to pay over 2 trillion won worth of debt that will mature this year.

As part of efforts to secure funds, the carrier sold off assets, including an office building and stock holdings in CJ Logistics, while pushing for initial public offerings of its major affiliates.

Last month, its IT affiliate Asiana IDT went public on the main bourse.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)