Sungjeong Co. to acquire Eastar Jet for KRW 108.7bn
Not yet reviewed: summarised from filings and press reports; figures may differ between reports. Please check the original sources.
- Deal value
- $75m
- Stake
- —
- Implied 100%
- —
- Revenue
- —
- Op. income
- —
- Multiples
- —
- Target
- Eastar Jet · Low-cost airline
- Buyer
- Sungjeong Co. · SI
- Seller
- Eastar Jet (court receivership; new share issuance)
- Structure
- —
- Announced
- Jun 24, 2021
- Closed
- —
- Stage
- Signed
Target
Eastar Jet is a low-cost carrier founded in 2007 with pre-COVID annual revenue in the KRW 500bn range; it halted flights in 2020 and entered court rehabilitation in 2021. Buyer Sungjeong is a Buyeo-based golf course (Baekje Country Club), real estate leasing and development company with 2020 revenue of KRW 5.9bn.
Deal rationale
According to Dealsite, Sungjeong said it would diversify into leisure and tourism combining air travel with golf and resorts in preparation for the post-COVID market, with golf tourism from China and Japan as the first step; short-term goals were resuming flights and regaining the AOC, and long-term a fleet of 16 passenger and 3-4 cargo aircraft with normalization within five years. Sungjeong said it had sufficient funds to pay the full price from existing cash and early-2021 real estate sales. According to Newsis, chairman Hyung Nam-soon said funding was possible without selling Baekje Country Club; the deal was a stalking-horse process in which Sungjeong exercised its preemptive right after the Ssangbangwool (Kwanglim) consortium's bid.
Press coverage
- 뉴데일리 (2021-06-25): “8~9월 중 인수대금 1087억원을 완납하고 연내 국내선 재운항에 나선다는 계획이다”
- 뉴시스 (2021-06-23): “이스타항공은 인수가 1100억원 외에 2000억원대의 추가비용이 필요한 상황이다”
- 딜사이트 (2021-06-24): “성정은 24일 서울회생법원에서 이스타항공 인수를 위한 투자 본계약을 체결했다고 밝혔다”
This is a data entry summarising filings and press reports. Please check the original sources for the figures.