Candidates interested in Korea’s second biggest full-service carrier Asiana Airlines Inc. would have to ready ammunition of maximum 2 trillion won ($1.76 billion) as the two budget carriers and backup service units are expected to be packaged into the sale plan.

IBK Investment & Securities on Tuesday estimated the deal to be worth 1.5 trillion won to 2 trillion won – 1 trillion won for the 33.47 stake in the airliner of parent Kumho Industrial plus management right and another 500 billion won to 1 trillion won for recapitalization as creditors want the new owner to purchase new shares to refuel the liquidity-short airliner.

Kumho Industrial, a de facto holding company for Kumho Asiana Group, passed a new restructuring outline on Monday to offer its full stake in Asiana Airlines to creditors in return for debt relief and new funding.

Creditors which aim to redeem their equity and debt stake in Asiana Airlines and Kumho Industrial plan to sell the airliner plus its family budget carriers Air Seoul and Air Busan where Asiana Airlines holds a 44.2 percent stake and 100 percent, respectively.

The news has sent shares of Asiana Airlines and Kumho Industrial soaring. On Tuesday, shares of Asiana Airlines rose 16.07 percent to close at 8,450 won, with those of Kumho Industrial up 6.62 percent at 16,100 won. IBM Investment revised up its stock price target for Kumho Industrial from 18,500 won to 25,000 and maintained “buy” opinion.

The securities company suggested that Kumho Asiana Group would merge Kumho Industrial and Kumho Buslines to lay the foundation for business normalization.

The group chairman Park Sam-koo stepped down last month to take responsibility for the accounting incident of the airliner, amid the group’s continued liquidity crunch. Asiana Airlines received a qualified opinion from its outside auditor on its 2018 financial statement, which led a two-day suspension on stock transactions of the air carrier and Kumho Industrial. It later received clearance after revising its financial statement.

By Park Ui-myung and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]