Printer Friendly

Korea Republic of : KAL's plan to acquire a controlling stake in KAI sinks.

A lack of bidders seems to have sunk the plans of Korean Air Lines (KAL)'s to acquire a 41.75% stake in Korea Aerospace Industries (KAI).

The carrier has informed in a stock exchange statement that it has sent a bid to acquire the stake in South Korea's plane-maker, however the law calls for the submission of at least two bids for the sale to proceed.

According to industry sources in Seoul, the carrier has long been interested in acquiring a controlling stake in KAI.

Along with its airline operations, KAL makes components for several major commercial aircraft programmes and offers MRO services for both commercial and military aircraft.

The carrier hopes to play an increasingly major role in making its own aircraft and has worked on several unmanned air vehicles.

The acquisition of KAI, the maker of the T-50 advanced jet trainer, FA-50 light fighter, KT-1 basic trainer and subassemblies for several other aircraft types, would make KAL the leading player in the South Korean aerospace industry.

KAI has made it known on 31 July that six of its stakeholders are offering to sell a combined 41.75% stake in the firm, 11.4% of which comes from state-held Korea Finance Corporation.

2012 Al Bawaba (Albawaba.com)

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2012 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Date:Sep 3, 2012
Words:217
Previous Article:Korea Democratic peoples Republic of,Korea Republic of,Pakistan : KOREAN GROUP to make US$3 Billion spending in Hydropower Project in PAKISTAN.
Next Article:Kuwait : Zain Group announces new structure of management team.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters