Asiana to expand capital with additional shares, bonds

Asiana Airlines held an extraordinary shareholders meeting on June 15, and voted to raise capital by increasing shares and issuing convertible bonds. The carrier put to a vote its decision to revise its articles of association, calling for an increase in the total number of issued shares and a higher limit on CBs. The amendment was passed with the approval of all shareholders present. With the shareholders’ approval, Asiana will increase the total number of its shares to 1.3b from 800m, while also raising its limit on CBs from 700b won ($578m) to 1.6t won. Asiana CEO Han Chang-soo said at the meeting, “The airline industry as a whole is having a difficult time from the first quarter of this year to the present due to COVID-19. This revision is to prepare for the need to increase capital in the aftermath of the pandemic.” Han added, “Based on the experience and capabilities accumulated by Asiana Airlines over the past 32 years, all executives and employees will do their best to maximize the interests of shareholders and company stakeholders by overcoming the crisis and enhancing corporate value. <br/>Market analysts were split on whether the move is a positive sign for the ongoing negotiations for Asiana’s sale to the HDC Hyundai Development Company.<br/>