[Courtesy of Asiana Airlines]
SEOUL -- A foreign investment management group has been in talks on buying a building used by South Korea's Kumho Asiana group as its head office in Seoul, Asiana Airlines, the country's second flag carrier, said Thursday.
Due diligence is under way after the unidentified foreign company signed a memorandum of understanding, Asiana said in a regulatory filing, adding price and other terms on the proposed sale of its building have not been decided.
There have been news reports that Deutsche Asset Management, an international investment management group, plans to attract German investors for the purchase of the 29-story building.
The Kumho Asiana group has been under pressure from creditors to ease a cash crunch caused by the purchase of Daewoo Engineering & Construction, a debt-stricken builder, in 2006. Several subsidiaries are under a rehabilitation program by creditors including Korea Development Bank (KDB).
The state-run bank has been in negotiations with China's Doublestar on selling a 45-percent stake in Kumho Tire, the country's second-largest tiremaker, but its union has opposed a foreign buyer.
KDB selected Hoban Construction, a mid-sized builder, as a preferred bidder on January 31 to sell a 50.75 percent stake in Daewoo Engineering. But Hoban Construction abandoned its bid last month, citing huge losses stemming from a troubled construction project in Morocco.
Market watchers have expressed doubt about the financial ability of Hoban Construction to run a major international builder with sales estimated at 11 trillion won (10.3 billion US dollars) in 2016.
KDB selected Hoban Construction, a mid-sized builder, as a preferred bidder on January 31 to sell a 50.75 percent stake in Daewoo Engineering. But Hoban Construction abandoned its bid last month, citing huge losses stemming from a troubled construction project in Morocco.
Market watchers have expressed doubt about the financial ability of Hoban Construction to run a major international builder with sales estimated at 11 trillion won (10.3 billion US dollars) in 2016.
reporter
Lim Chang-won
cwlim34@ajunews.com
