South Korea’s state policy lender today said that this year it would complete the sale of a controlling stake in aircraft maker Korea Aerospace Industries (KAI), in a deal worth nearly $1 billion.
The Korea Finance Corporation said in a statement that it would receive letters of intent by August 16 for a 41.7 per cent stake in KAI, the country’s sole aircraft maker established in 1999.
It promised to seal the deal this year after receiving preliminary bids in September and final bids in October. Korea Finance is a key shareholder of KAI.
The 41.7 per cent stake was valued at $971 million, based on Friday’s closing share price.
The final price will include a premium for management control of Korea Aerospace, said the Dow Jones Newswires.
Flag carrier Korean Air is considering bidding for the stake to diversify its business portfolio, it said.