South Korea's government plans to sell its 30% stake in Korea Aerospace Industries, with both local and international companies likely to be invited to bid for the share.
An official at the Korea Development Bank, which owns a stake in KAI for the government, says that internal talks are ongoing on how to proceed with a sale. However, he adds that a decision has not been made.
Hanjin, the parent company of Korean Air, could be a potential bidder, according to domestic news reports. The airline has a small aircraft components manufacturing business that brings in about $280 million in annual sales. Hanjin is keen to use KAI's expertise and develop an aircraft manufacturing business, add the reports.
KAI, which primarily manufactures military products but is also a supplier for Boeing and Airbus commercial aircraft, had about 900 billon won ($675 million) in sales in 2008.
Source: Air Transport Intelligence news
