South Korea’s Jeju Air will acquire a majority stake in compatriot Eastar Jet as planned for a W54.5 billion ($45.8 million) cash consideration.

The amount is lower than the W69.5 billion previously announced.

W11.95 billion of the acquisition price has already been paid as down payment for the stock sale contract and the balance will be paid on the 29 April acquisition date, Jeju says in an announcement.

The acquisition is for “enhancing competitiveness and synergy as an air passenger carrier,” it adds.

While Jeju is still committed to acquiring 4.9 million Eastar shares, equivalent to a 51.17% stake, this may be subject to change but will not fall below 50%.

It states that the acquisition price is equivalent to 14.3% of its own equity, or 5.3% of total assets at the end of the current fiscal year.

Jeju previously said that to fund the acquisition, it would issue a W10 billion convertible bond that offers nearly 1.5% of its own share capital at maturity, with a five-year tenor and bearing 1% coupon.