South Korean conglomerate Daemyung Sono Group will sell its entire 22% stake in hybrid airline Air Premia as it refocuses on budget airline T'way Air.
South Korean conglomerate Daemyung Sono Group will sell its entire 22% stake in hybrid airline Air Premia as it refocuses on budget airline T'way Air.
The company's holding company – Sono International – will sell the 22% stake of Air Premia that it owns as part of a joint venture with private equity firm JC Partners – to local tire retailer Tire Bank in a deal reported to be worth around KRW 120 billion (~USD $86.12 million).
According to Sono International, the deal is expected to be completed by the end of September. Tire Bank will become the majority shareholder of Air Premia with a total stake of 68%.
Sono International previously signed a deal in February to acquire a 46.26% stake in T'way Holdings – which owns 28.02% in T'way – in a deal worth around KRW 250 billion (~USD $10 billion). The deal raises the company's stake in the airline from 26.88% to 54.79%.
"The planned sale of the Air Premia stake is aimed at focusing on operations of T'way Air and enhancing synergies between the low-cost carrier and the group's hotel and resort services," Sono International said in a statement.
As part of the merger between Korean Air and Asiana, Korean Air gave flight slots for T'way to launch flights to four destinations in Europe – Paris, Frankfurt, Rome, and Barcelona – as part of conditions for the merger approval by the European Commission (EC).
Since the launch of its operations in 2021, Air Premia currently operates flights to around 11 destinations in Asia and North America. Charter flights are also operated to select cities in Europe.
Powered by Froala Editor