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Kumho Holdings, the holding company of Kumho Asiana Group, said in its regulatory filing Wednesday that it sold 160 billion won ($140 million) in bonds to HNA Group of China attached with a warrant to buy its shares at 150,000 won apiece.

The proceeds would be used to refinance maturing debt and for operation proceeds, it said.

The agreement is to create strategic synergy between the two airliners and other services, Kumho Asiana said, adding that it will continue to expand its partnership with HNA Group in diverse business areas including hotel, resort, ground handling, maintenance and catering.

Last year, Kumho Asiana Group Chairman Park Sam-koo met with HNA Group CEO Adam Tan in Seoul to discuss areas for cooperation.

In their first joint venture, Asiana Airlines launched ‘Gate Gourmet Korea,’ an inflight catering service with Gate Gourmet Switzerland GmbH, HNA Group’s subsidiary.

HNA Group is the largest shareholder of China`s fourth-largest airline Hainan Airlines and Hilton Hotel and owns the world’s largest aircraft ground handling business Swissport, global catering business Gate Gourmet Swiss, and world’s third-largest aircraft maintenance business, SR Technics.

Shares of Kumho Industrial ended Wednesday at 9,070 won, down 0.98 percent or 90 won from the previous session.

By Kim Jung-hwan

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (Mar. 15, 2017)