Air Incheon will conduct a capital increase of 820 billion won to secure funds for the acquisition of the cargo division of Asiana Airlines and for operational expenses.
Air Incheon announced on the 4th that the board of directors resolved to issue new shares worth 820 billion won through a shareholder allocation method on June 26. The shareholder allocation capital increase gives existing shareholders priority in the subscription of new shares.
The funds raised from this capital increase are expected to be used for the acquisition payment of 470 billion won for the cargo division of Asiana Airlines, along with earmarked tax, information technology (IT) system construction and integration (PMI) expenses, transaction-related costs, essential working capital, and aircraft replacement funds.
Air Incheon is preparing to launch Korea's first integrated cargo airline on August 1. To this end, employees from Air Incheon and the cargo division of Asiana Airlines are working together at the Air Incheon Seoul office located in Magok-dong, Gangseo-gu, Seoul.
An Air Incheon official said, “This capital increase ensures that all shareholders can participate in the company’s growth opportunities, and we expect it to promote stable financing and enhance shareholder value.”