Hanjin KAL to buy new shares of Jin Air in Nov.

(Yonhap)

Hanjin KAL Corp. said Friday it will spend 53.6 billion won (US$45.2 million) to buy new shares to be issued by its low-cost carrier Jin Air Co.

Earlier in the day, the board of directors of Hanjin KAL, the parent of Jin Air, decided on the purchase of Jin Air's 7.36 million new shares, Hanjin KAL said in a regulatory filing.

After the purchase slated to take place in November this year, Hanjin KAL's stake of Jin Air will be lowered to 56.38 percent from the current 60 percent, Hanjin KAL said.

Last Wednesday, Jin Air said it will raise 109 billion won by selling new shares to tide over its cash shortage caused by the coronavirus pandemic.

The low-cost carrier is scheduled to issue 15 million shares at 7,820 won per share on Sept. 16.

 Investors are required to make payments for the new shares on Nov. 3, and the new shares will be traded on the Seoul bourse on Nov. 16, Jin Air said. (Yonhap)