Kumho Asiana Group has succeeded in attracting a large investment from a Chinese business group.
The group announced on March 15 that it has secured 160 billion won (US$139.49 million) worth of investments from Hainan Airlines (HNA) Group of China. The Chinese company will be acquiring bonds with a warrant issued by Kumho Holdings, the holding company of Kumho Asiana Group, to secure operating funds for 160 billion won (US$139.49 million).
The investment is an extension of the two companies’ cooperative plans discussed at the end of last year. Kumho Asiana Group said that the investment will not be used to buy Kumho Tire. The cooperative plans include the development of hotels and resorts and aircraft ground handling, aircraft MRO and catering businesses.
As part of the two companies’ first cooperative project, Asiana Airlines and Gate Gourmet Switzerland GmbH, a subsidiary of HNA Group, founded a joint venture “Gate Gourmet Korea” for in-flight meal business through a joint investment at the end of last year.
As the second cooperative project, the two plans to continuously expand partnership in various sectors, including the development of hotels and resorts, in the future with the latest investment to create a synergy.
Meanwhile, HNA Group is the largest shareholder of China’s fourth-largest airline Hainan Airlines and Hilton Hotel. It also owns world’s largest aircraft ground handling business Swissport, global catering business Gate Gourmet Swiss, and world’s third-largest aircraft maintenance business SR Technics.