Korean Air parent to buy Asiana Airlines for $1.6bn

Hanjin KAL Corporation, the parent of Korean Air (KE, Seoul Incheon), has agreed to buy local rival Asiana Airlines (OZ, Seoul Incheon) for KRW1.8 trillion won (USD1.6 billion) in a transaction propped up by state-owned Korea Development Bank (KDB). Hanjin Group, which is active mostly in the aviation and shipbuilding sectors, said in an investor update that it will receive a KRW800 billion (USD720 million) investment from KDB, including KRW500 billion (USD450 million) by issuing new shares to the bank through a third-party allotment and...