Asiana mulls selling stake in Korea Express

Asiana Airlines, South Korea's No 2 airline by revenue, is considering selling a 23.95 percent stake in Korea Express to secure capital for the restructuring of its cash-strapped parent, Kumho Asiana Group,reported The Wall Styreet Journal.

"The group needs to focus on core businesses such as Kumho Industrial, Asiana Airlines and Kumho Tire, and seek solid long-term growth by selling non-core assets," a Kumho group spokesman said.

Kumho has been suffering from a cash shortage after its heavily leveraged acquisition of Daewoo Engineering & Construction in 2006.

Asiana Airlines and Daewoo Engineering each purchased a 23.95 percent stake in Korea Express, the country's No. 1 logistics company by revenue in 2008. Since then, however, the company's shares have been underperforming.

The stake sale of Korea Express may depend to a certain extent on the role played by Korea Development Bank, the main creditor of Kumho Asiana Group.
(Source:www.cargonewsasia.com)