Tyre retailer Tire Bank has completed the acquisition of a 22% stake in Air Premia (YP, Seoul Incheon), according to a report by South Korean newspaper The Chosun Ilbo. The company settled the outstanding balance of KRW99.4 billion won (USD71 million) with sellers JC Partners and Sono International by the September 30 deadline.
Contrary to its earlier plan, Tire Bank did not pursue external financing and instead self-funded the transaction, which, including the KRW20 billion (USD14.3 million) deposit, had a total value of KRW119.4 billion (USD85 million).
Concerns had previously surfaced that the deal might collapse after Tire Bank chairman Kim Jeong-kyu was detained on tax evasion charges. Under the sale terms, failure to close by the end of September would have triggered interest charges through October, after which the sellers would have been entitled to terminate the agreement.
As a result of the acquisition, Tire Bank and AP Holdings, its private equity arm, now jointly control around 68% of Air Premia.
ch-aviation has reached out to Air Premia for comment.
