Will MBK bid to acquire Asiana Airlines' cargo unit?

MBK Partners' Special Situations Fund is expected to participate in an acquisition bid for Asiana Airlines' cargo business by teaming up with a domestic low-cost carrier (LLC), according to company officials and industry watchers, Sunday. The Special Situations Fund II is the Asia-focused private equity firm's second flagship fund with a size of 2.1t won ($1.8b) established in 2021. Yet, it is largely undecided which domestic carriers will be partnering with the private equity fund for the acquisition bid. "It's a deal that's out in the market, and the Special Situations Fund is reviewing whether to join the acquisition deal. But nothing has been decided for now," an official from MBK Partners said Sunday. Early last month, UBS, the lead advisor for the sale, announced the shortlist of four LCCs — Jeju Air, Air Premia, Eastar Jet and Air Incheon — as potential buyers of the airline's cargo business. Given that only businesses with Air Operator Certificate (AOC) accreditation are eligible to participate in the bidding process, MBK Partners is required to join hands with one of the shortlisted carriers, if the private equity fund aims to enter the bid. Considering the limited financing capabilities of the shortlisted candidates, some of the low-cost carriers are mulling over the possibility of partnering with multiple financial investors with ample cash to strengthen their funding power to win the bidding.<br/>