Kumho Resort is in final talks to sell Asan Spavis to iService, a building management firm under Hyundai Development Company (HDC), according to an investment banking source on Tuesday.
The deal worth some 40 billion won ($35.6 million) is expected to be completed sometime in July.
Located about one-hour drive away from Seoul, Asan Spavis is a hot spring resort popular among metro residents due to its geographical proximity to Seoul and surrounding areas. Its large indoor and outdoor pools can house up to 7,100 users. Sales came to more than 10 billion won with an operating profit of about 2 billion won last year.
HDC has been trying to diversify its business of construction, hotel and resort management into leisure and other cash-cow operations. One example is its participation in a bid for Pine Resort last year. HDC’s iService provides building management services and reported an operating profit of 8.9 billion won over sales of 238.5 billion won last year. HDC’s key subsidiary is Hotel iPark responsible for hotel development and operations.
Kumho Resort is owned by KA Investment, a joint investment company set up by Asiana Airlines Group companies such as Asiana IDT, Asiana Airport and Asiana Sabre. KA Investment acquired a 48.8 percent stake in Kumho Resort from Kumho Buslines for 105.7 billion won. KA Investment is expected to retrieve its investment from selling Asan Spavis.
Kumho Resort acquired Asan Spavis from Taecheon Development in 2008 for 55 billion won. The acquisition was financed by the issuance of new shares in affiliated company Kumho Industrial.
By Kang Doo-soon and Chun Kyung-woon
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