Jeju Air has delayed acquiring a majority stake in compatriot Eastar Jet as it needs time to conduct due diligence on the latter.

Jeju expected to complete the stock sale and purchase contract by 9 January, but this has been pushed back until the end of the month.

“The above schedule is subject to change during due diligence and progress, and will be disclosed without delay when this contract is concluded or changes occur,” it says in a stock exchange disclosure.

Jeju announced on 18 December that it would acquire a 51% stake in the smaller Eastar for W69.5 billion ($60 million).

To fund this acquisition, it is issuing a W10 billion convertible bond that offers nearly 1.5% of its share capital at maturity, with a five-year tenor and bearing 1% coupon.