Asiana capital reduction plan gets approved by shareholders
Shareholders of Asiana Airlines have effectively agreed to rival Korean Air acquiring the cash-strapped carrier, by voting to approve a share capital reduction plan.
More than 96% voted for it at the extraordinary shareholder meeting which dilutes their shares from 3 to 1, paving the way for a merger with Korean Air.
The reduction in share capital significantly reduces its capital but improves the chances of a merger by reducing the financial burden on KAL.
"Considering the direct impact of the unprecedented pandemic, we cannot rule out limitation on stock trading or credit ratings cut unless we reduce the share capital," Asian said in a statement.
Korean Air hopes to complete the deal for Asiana, subject to government approvals in multiple countries, by the middle of 2021.
Meanwhile, Korean Air this week announced the expansion of its AI-powered chatbot service to include the English language on Facebook messenger and Korean instant messaging app KakaoTalk.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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