South Korea to List Korea Aerospace in Domestic Market in 2011
South Korea plans to seek an initial share sale of Korea Aerospace Industries Ltd., the country’s largest plane maker, as early as the first half of 2011, Korea Finance Corp. said.
Korea Finance, the largest shareholder of Korea Aerospace, will begin preparations to list shares on the Korea Exchange, the state-run agency said today in an e-mailed statement. The agency plans to sell a controlling stake in Korea Aerospace after the listing, it said.
Korea Aerospace, also known as KAI, builds military training jets and makes wing parts for Airbus SAS and Boeing Co., the world’s biggest commercial plane manufacturers.
The company in April said it aims to double sales to 1.83 trillion won ($1.5 billion) by 2011 by winning more non- government contracts. It plans to develop a 90- and 70-seat regional passenger plane through an international venture to cut its dependence on defense sales.
Korea Finance, which was spun off from the Korea Development Bank, held a 30.1 percent stake in KAI while Hyundai Motor Co. and Samsung Techwin Co. both held 20.5 percent as of Dec. 31, according to the company’s regulatory filing in March.
To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net.
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