September 08, 2008

Kumho Asiana inks deal to acquire Korea Express

Kumho-Asiana Group, South Korea's seventh largest conglomerate, has signed a preliminary agreement to take over Korea Express Co, the nation's top logistics company.

Kumho-Asiana will conduct a formal due diligence investigation of Korea Express by February 15th 2008 and the final contract will be signed on March 5th 2008.

The deal, reportedly valued at KWR 4 trillion won (USD 4.2 billion), will open the door for Kumho-Asiana, which owns Asiana Airlines Inc, to expand its cargo business into the inland freight operations of Korea Express.

Last week, a consortium led by Kumho-Asiana's two major affiliates Daewoo Engineering and Construction Co and Asiana Airlines won the bid for Korea Express, beating Hanjin Group, STX Group and Hyundai Heavy Industries Co.

Korea Express has been under court receivership since 2000 after it failed to repay the debts of its parent company, Dong-ah Construction, which collapsed in financial turmoil.