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Photo = T'way Airlines |
[Alpha Biz= Kim Jisun] The planned acquisition of T’way Air by Daemyung Sono Group has encountered another delay due to the prolonged review process by the Korea Fair Trade Commission (KFTC).
On May 20, T’way Air (KRX: 091810) announced that its extraordinary general meeting of shareholders (EGM), originally scheduled for May 23, has been postponed to June 24. The delivery date for the shares related to the acquisition has also been rescheduled to the same day.
At the upcoming EGM, T’way Air was set to appoint nine new board members from Daemyung Sono Group and finalize the share transfer process to complete the acquisition. However, as the KFTC’s corporate combination review has not been completed, both parties have revised the timeline.
This marks the second time the EGM has been postponed. Initially slated for March 31, it was first delayed due to pending regulatory approval and rescheduled to May 23. Now, the latest delay pushes it into late June.
The KFTC is currently reviewing the merger filing submitted by Sono International and T’way Holdings. While the standard review period is 30 days, it can be extended up to 90 days depending on factors such as requests for supplemental documents and structural review of the transaction. It has been reported that the regulator requested additional documentation from Daemyung Sono, which may further delay the approval process, as the time taken to provide supplemental materials is not counted in the official review period.
As a result, Daemyung Sono’s planned entry into the airline industry is also being pushed back. In February, Yelimdang, the largest shareholder of T’way Holdings, agreed to sell 52.34 million shares (46.26% of total issued shares) to Sono International for KRW 250 billion. When combined with Daemyung Sono Group’s existing 26.77% stake in T’way Air, the group would hold a total of 54.79% ownership in the airline.
Daemyung Sono Group has made the acquisition of T’way Air a top priority after withdrawing from a previous deal to acquire Air Premia.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
