[Alpha Biz= Kim Jisun] Hyundai Glovis (KRX: 086280) announced on June 16 that it will invest a total of KRW 200.6 billion in the private equity fund “Socius Korea Investment No.1 Corporate Stability PEF.”
The fund, established by private equity firm Socius, is a project vehicle formed to acquire the cargo business of Asiana Airlines (KRX: 020560). Socius is the largest shareholder of Air Incheon, Korea’s only dedicated cargo airline, with an 80.3% stake.
The new investment represents an increase of KRW 50.6 billion from the originally planned KRW 150 billion. As a result, Hyundai Glovis’ stake in the fund will rise from 34.9% to 45.2%. The company has also secured preferential rights to purchase shares in the integrated cargo airline (Air Incheon) when it is sold.
Last August, Hyundai Glovis made an initial investment of KRW 50 billion in the Socius-led fund. At the time, the company announced plans to contribute an additional KRW 100 billion upon the merger of Air Incheon and Asiana’s cargo division, targeting a 34.9% stake. However, it has now decided to raise its second-round investment to KRW 150.6 billion. The additional investment is scheduled for June 25.
In January, Air Incheon signed a definitive agreement to acquire Asiana Airlines’ cargo business for KRW 470 billion through a spin-off and merger deal. The transfer includes 11 freighter aircraft and approximately 800 employees. The launch of the new integrated cargo airline is scheduled for August 1.
Socius is completing the acquisition with approximately KRW 350 billion raised through the fund and an additional KRW 300 billion in acquisition financing already secured. Of the total, KRW 470 billion will be paid to Asiana Airlines as the purchase consideration to finalize the deal. The remaining KRW 180 billion is expected to be used for post-acquisition investments, including aircraft procurement.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
