S.Korea state lender to sell stake in aircraft-maker

30 July 2012
Flag carrier Korean Air reportedly is considering bidding for a stake in aircraft maker Korea Aerospace Industries (KAI)
This file photo shows planes of local carriers sitting on the tarmac at Gimpo airport in Seoul, in 2009. Korea Finance Corporation said on Monday it would complete this year the sale of a controlling stake in aircraft maker Korea Aerospace Industries (KAI), in a deal worth nearly $1.0 billion

South Korea's state policy lender said Monday it would complete this year the sale of a controlling stake in aircraft maker Korea Aerospace Industries (KAI), in a deal worth nearly $1.0 billion.

Korea Finance Corporation said in a statement it would receive letters of intent by August 16 for a 41.7 percent 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 percent stake was valued at 1.1 trillion ($971 million), based on Friday's closing share price.

The final price will include a premium for management control of Korea Aerospace, Dow Jones Newswires said.

Flag carrier Korean Air is considering bidding for the stake to diversify its business portfolio, it said.