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FINWIRES

Korean Air's Jin Air to Absorb Asiana's LCC Units Air Busan and Air Seoul

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Korean Air's (KRX:003490)subsidiary Jin Air has agreed to merge with Asiana Airlines (KRX:020560) subsidiaries Air Busan and Air Seoul through an absorption-type merger.

In the merger, Jin Air, which will be the surviving entity, will issue 50.3 million new shares at exchange ratios of 1:0.2863 and 1:0.7502, respectively.

Korean Air will remain Jin Air's largest shareholder post-merger, according to a bourse filing on Friday.

The merger aims to create synergies, strengthen competitiveness, and improve governance, with a shareholders' meeting scheduled for December to vote on the exercise.

Registration of the merged entity is targeted for March 17, 2027 though the deal requires regulatory approvals from Korea's Fair Trade Commission and the Ministry of Land, Infrastructure and Transport, as well as foreign filings including in Vietnam.

A special committee of independent directors reviewed the transaction for fairness, the filing read.

Air Busan shareholders who oppose the merger may exercise appraisal rights at 1,495 won per share, with the deal terminable if total claims surpass 200 billion won.

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