Hyundai Glovis has confirmed it will invest in a consortium led by Air Incheon as part of plans to acquire Asiana Airlines’ cargo business.
Earlier this month, Republic of Korea (ROK)-based logistics company Hyundai Glovis said it was considering investing in an acquisition consortium set up by Air Incheon after the airline was named as the preferred bidder for Asiana Airlines’ cargo business in June.
Hyundai Glovis said on August 13 that it would invest W150bn (approximately $110m) to acquire a 34.9% stake in 'Socious No. 5 Private Equity Investment Company' (PEF), the fund that will invest in the Air Incheon consortium, said Maeil Business Newspaper. Inhwa Industrial will be the largest investor.
Following the announcement, Hyundai Glovis said: "This investment will strengthen the competitiveness of the aviation logistics business."
Any investment into Asiana by Hyundai Glovis would help the company further diversify into air cargo, adding to its global logistics and ocean shipping services. The company said on its website that it currently has an air export/import volume of 64,468 tons.
In 2022, it signed an agreement to build and operate a logistics centre at Incheon International Airport, due to be completed next year.
ROK-based Air Incheon was named by Korean Air as the preferred bidder for the sale of Asiana’s cargo business two month’s ago as part of Korean Air’s acquisition of Asiana.
The cargo business is being sold, at an estimated price of $219-$364m, in order for Korean to secure regulatory approval to acquire Asiana. The sale agreement is still subject to review by the European Commission following a lengthy process that stretches back to 2020.
Air Incheon's planned takeover of Asiana's cargo business continues as China Airlines has sold two Boeing 747-400 freighters to Asiana.
