Korean Air, Asiana M&A takes off as shareholders ok M&A process

The grounds of a mega M&A merger between Korea’s two full-service carriers have been set after Korean Air Lines shareholders on Wednesday gave their blessing for the marriage by approving changes in the corporate mandate to acquire Asiana Airlines. Korean Air Lines announced Wednesday that 55.73 percent of its shareholders with voting rights attended the shareholders’ meeting in Seoul, of which 69.95% approved the article change to bump up maximum outstanding shares to 700m from 250m to raise capital and realign stakeholding status necessary to bring Asiana Airlines under one roof with state backing. The additions of 173.6m shares arriving by March would raise the flag carrier’s outstanding shares to 350m and fuel it with 2.5t won ($2.3b) ammunition to take over 60% in Asiana Airlines. The bulk of new issues goes to Hanjin KAL which has received funding from state lender Korea Development Bank. With stake issue resolved, Korean Air Lines would focus on winning antitrust reviews from host and overseas governments for the M&A.<br/>