Asiana Airlines, Kumho Industrial sell off landmark building in Vietnam
By Lim Jeong-yeoPublished : June 9, 2016 - 16:53
Asiana Airlines Inc., South Korea's No. 2 flag carrier, said Thursday it has sold a 50 percent stake in Kumho Asiana Plaza, a Vietnamese landmark building, to Saigon Boulevard Holdings Pte. Ltd as part of its efforts to improve its financial health.
The $107.5 million deal was completed between the carrier and the affiliate of Singaporean property developer Mapletree Investments Pte earlier in the day, an official of Asiana Airlines said.
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Kumho Asiana Plaza built by Kumho Industrial Co., the construction unit of Kumho Asiana Group, in Ho Chi Minh City houses a hotel, a residence and business offices.
The carrier said the deal generated 50.9 billion won ($44 million) in profit, which could help improve its financial situation and secure liquidity.
Asiana Airlines, a flagship unit of Kumho Asiana Group, reported a capital impairment ratio of 35 percent last year, up from 18.5 percent in 2014. The carrier has suffered capital erosion in the past five years.
Meanwhile, Kumho Industrial, the co-owner of the Vietnamese building, said it also sold its 50 percent stake in Kumho Asiana Plaza to Saigon Boulevard Holdings Pte. at the same amount of money. (Yonhap)