hankyoreh

Kumho-Asiana Group, a South Korean transportation conglomerate, said Monday it has signed a formal deal to buy a controlling stake in Korea Express Co., the nation's biggest logistics company, for 4.1 trillion won (US$4.34 billion).

The deal would open the door for Kumho-Asiana, which has the nation's No. 2 carrier Asiana Airlines Inc. under its wing, to expand its cargo operations into the inland freight business dominated by Korea Express.

"The business portfolio of Korea Express will play a leading role in helping the group achieve its vision in the logistics industry," said Oh Nam-soo, head of Kumho-Asiana's strategic management division.

For the transaction, Korea Express is selling 24 million new shares, equivalent to 60 percent of its enlarged capital.

Daewoo Engineering & Construction Co., the group's construction unit, will buy 9.62 million new shares of Korea Express for 1.6

trillion won. Asiana will buy 8.17 million new shares for 1.4

trillion won, they said earlier.

The remaining stake will be purchased by partners of Kumho-Asiana, group officials said.


SEOUL, March 3 (Yonhap)