Tire Bank to Finalize Air Premia Stake by Q3 2025
Tire Bank is set to complete its acquisition of a 22% stake in South Korean hybrid carrier Air Premia by September 30, according to local media. The tire retailer is expected to pay the remaining KRW99.4 billion (USD 71 million) to sellers JC Partners and Sono International, securing the deal after earlier concerns over financing delays.
The acquisition, valued at KRW119.4 billion (USD 85.2 million), began with an initial KRW20 billion (USD 14.2 million) payment in May. The latest reports confirm that Tire Bank itself—not its subsidiaries—will complete the transaction. The original plan had been to route the deal through AP Holdings, Tire Bank’s subsidiary that already owns 46% of Air Premia.
To fund the purchase, Tire Bank has approached multiple securities firms, reportedly seeking loans at interest rates around 3%, below the prevailing 5% market average. The company is said to have pledged its extensive real estate holdings as collateral to secure the financing.
Adding to the intrigue, chairman Kim Jeong-kyu is overseeing the process from prison, where he is serving a three-year sentence and facing a KRW14.1 billion (USD 10 million) fine for tax evasion. Reports suggest Kim has pledged personal assets to ensure the deal’s completion.
If Tire Bank misses the September 30 payment deadline, interest charges will apply. Should the transaction fail to close by the end of October, the sellers retain the right to cancel the agreement and pursue a new buyer, with Tire Bank forfeiting its KRW20 billion deposit.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com