Korea’s Eastar Jet sold to property and golf course manager

Eastar Jet, whose revenue once reached KRW500b won (US$440m), is expected to be sold to local real estate firm Sungjeong, also known as SJ, whose revenue last year was around KRW40b (US$35m). A property rental company and golf course manager, Sungjeong confirmed on June 17 that it intended to carry out its preferential right as the “stalking horse” bidder to buy the indebted budget carrier. Sales advisor Deloitte submitted an official letter expressing this objective to Seoul Bankruptcy Court, a Sungjeong representative told local media. The only other contender, the bigger-budget clothing and underwear firm Ssang Bang Wool, submitted a bidding price of KRW110b (US$97.1m), which was about KRW10b (US$8.8m) higher than the price Sungjeong proposed in its earlier provisional contract. But Sungjeong decided to match the price, giving it the right as the preferential bidder to go ahead with the acquisition. However, the court must still confirm it as the final buyer.<br/>