Korean Air ups stock sale target to $3bn

Korean Air (KE, Seoul Incheon) has increased the amount it aims to raise via its planned rights issue set for March, to about KRW3.316 trillion won (USD3 billion) from KRW2.5 trillion (USD2.3 billion), a decision it said had been motivated by its soaring stock price. As previously reported, out of the rights issue proceeds, the flag carrier plans to spend KRW1.5 trillion (USD1.35 billion) on acquiring a controlling stake in Asiana Airlines (OZ, Seoul Incheon), a figure that has not changed with the revised target. However, the remaining sum, which it plans to use paying off some of its debts, has increased to KRW1.816 trillion (USD1.64 billion), it said in a stock exchange filing. The KRW3.3 trillion will be raised through the issue of 173.6 million shares at KRW19,100 (USD17.28) per share, higher than the originally specified KRW14,400 (USD13). However, the final price will be confirmed on February 26. Korean Air’s shares have risen 28% in value so far this year, outperforming the Korea Composite Stock Price Index (KOSPI) average of 9.3%, Yonhap News Agency reported. Scheduled to present a post-merger integration plan by March 17, Korean Air has been conducting due diligence on Asiana since early December studying its rival’s cost structure and other details.