(File photo, courtesy of T’way Air)
South Korea’s top resort operator Sono International Co. bought a stake in T’way Air Co., a local low-cost carrier (LCC), for 105.6 billion won ($76 million) after taking over overseas hotels to expand its global businesses.
Sono purchased a 14.9% stake in T’way from JKL Partners with an option to buy the remaining stake of 11.87% held by the Seoul-based private equity firm by the end of September, according to industry sources on Tuesday.
The budget airline’s largest shareholders are Tway Holdings Inc. and its top stockholder YeaRimDang Publishing Co. with a combined 29.74%.
Sono invested in T’way as a part of its global expansion strategy, industry sources said. The LCC is actively increasing long-haul flights such as routes to Europe, which is expected to help the resort operator create synergy with overseas hotels it acquired, according to the sources.
HOTELS, AIRLINE
The resort operator has been expanding its overseas businesses since it unveiled a goal of securing 500 chains in other countries changing its brand to Sono from Daemyung in 2019.
Sono secured the operation right of a Vietnam-based golf resort owned by Hyundai Engineering & Construction Co. in 2019 while taking over the Normandy Hotel in Washington DC in 2022 and 33 Seaport Hotel New York in 2023.
Sono acquired Hotel Dame Des Arts in Saint Germain-des-Prés, Paris in March this year and a 100% stake in Hawaii-based Waikiki Resort Hotel Inc. from Hanjin Kal Corp. in April.
The South Korean hospitality company plans to make inroads into Inroads into Japan and Indonesia.
The active expansion caused expectations that Sono may pursue an initial public offering again, industry sources said.
The company had sought a listing in 2019 but dropped the plan due to COVID-19.
By Ji-Yoon Yang and Jun-Ho Cha
yang@hankyung.com
Jongwoo Cheon edited this article.
