South Korean logistics company Hyundai Glovis is mulling taking a stake in Air Incheon (KJ, Seoul Incheon) ahead of that carrier taking over the Asiana Airlines cargo business.
In an August 2 regulatory filing titled "Response to Rumours or Media Reports," Hyundai Glovis confirmed it was considering becoming an investor but emphasised that no decision had been made. The filing, a response to local media reports, indicated that the company would make a decision within the next 30 days.
Air Incheon was a longer-odds candidate in the race to buy Asiana's cargo business, which is being sold to satisfy antitrust concerns connected to the planned merger of Asiana and Korean Air. The deal will see Air Incheon, which presently operates four B737-800(SF)s, take on Asiana's eleven freighters, primarily B747 types, a number of existing contracts, and some Asiana employees. However, Air Incheon outplayed rivals Air Premia and Eastar Jet to place the winning bid.
Seoul-based Socius Private Equity owns over 85% of Air Incheon and, as earlier reported in ch-aviation, is planning to conduct a KRW400 billion won (USD290 million) capital raising by increasing the size of its existing Socius No. 5 fund to cover the Asiana cargo acquisition cost. If Hyundai Glovis decides to participate, the air cargo investment will sit alongside its existing logistics, shipping, and distribution interests.
Air Incheon's acquisition remains subject to final approval from the European Commission (which has conditionally approved the merger) and the United States Department of Justice, with the US remaining the last jurisdiction to approve the proposed merger, conditionally or otherwise.
