Asiana Airlines' cargo business up for sale

Upon receiving a conditional approval from the European Union (EU) over the merger between Korean Air and Asiana Airlines, the sale of Asiana Airlines' cargo business has officially kicked off, as selling off the freight arm was part of the conditions to receive the EU grant over the merger deal. According to the investment banking industry on Tuesday, UBS, the lead advisor for the sale of Asiana Airlines' cargo business, has recently distributed investment memoranda and non-disclosure agreements (NDAs) to potential acquirers of the cargo business. Potential buyers are largely anticipated to include four domestic low-cost carriers — Jeju Air, EastarJet, Air Premia and Air Incheon. As UBS plans to soon distribute bid proposals to potential buyers that sign NDAs, companies interested in acquiring the cargo business are expected to submit their drafts of bid proposals, specifying plans for financing and business strategies, among others, by the end of this month. Korean Air, the seller, plans to select a shortlist of the final group of potential acquirers after receiving bid proposals, aiming to complete the sale by October at the latest. Currently, the airlines mentioned as potential acquirers are considering various approaches to source funding, including utilizing the financial strength of their major shareholders or forming consortia with strategic investors to proceed with the acquisition.<br/>