The Share Price of HDC Hyundai Development…
The share price of HDC Hyundai Development, which has been selected as the preferred bidder for Asiana Airlines, shows a downward sloping curve. This is in contrast to Kumho Asiana Group shares, which are acquired companies.
According to the Korea Exchange on December 12, HDC Group shares, HDC (6.49%) and HDC Hyundai Development (1.97%), are showing strength as of 3:06 pm.
Kumho Industrial held its board of directors and confirmed the HDC Consortium as a priority negotiation for the acquisition of Asiana Airlines, Air Busan and Asiana IDT.
The HDC Consortium is based on Kumho Industrial’s 6868,806,806 shares (31% of shares) and common stocks issued by Asiana Airlines, as well as all Asiana subsidiaries, including Asiana Airlines, Air Busan, Air Seoul, and Asiana IDT. Take over all. To this end, it spent about 2.4 trillion won in the main bid and beat other rival candidates such as Aekyung. The Aekyung Stone Bridge Consortium is reported to have spent about KRW 1.7 trillion, which is about 70 billion won.
By acquiring Asiana Airlines, HDC Hyundai Industrial Development will expand its business to tourism, including the hotel, leisure and duty-free businesses, as well as the aviation industry.
However, the stock has not been strong since June. The day showed a slight upswing, but the stock has lost about 27% in the last six months. Uncertainty in the business environment has increased as the government pulled out private-sold upper limit cards to seize steeply rising real estate prices. This contrasts with Kumho Asiana Group’s recent surge in selling issues.
Securities firms are also skeptical of the acquisition of HDC Hyundai Development. It is said that it was a poisoned holy grail because it could be negative for short-term earnings.
Meritz Securities said that the investment point was HDC Hyundai’s close to 1 trillion won in cash and the new domestic industry, which will become full-fledged next year, but it was difficult to measure the value of its net cash.
Park Hyung-Ryeol, a researcher at Meritz Securities, said, “The acquisition of Asiana Airlines is known to be a total investment of 2.5 trillion to 290 trillion won. In this case, the net cash held will be replaced by equity value.” “A negative impact on earnings, at least in the short term.”
Evest Investment & Securities also lowered its target price from W46,000 to W40,000, saying there are questions about the synergy between construction and aviation.