Temasek, others to buy Hainan Airlines stake for US$1.1 billion
Parent firm HNA says it plans to use the new funds to expand its operations by buying aircraft and support six other projects, such as pilot training, engine maintenance and training facilities
Hainan Airlines Holding plans to raise as much as 7 billion yuan (US$1.1 billion) by selling shares to a group of investors, including an arm of Singapore state investment company Temasek Holdings, as part of a restructuring planned by the unit of Chinese conglomerate HNA Group Co.
The Hainan-based carrier is selling up to 20 per cent of its Shanghai-listed shares to 10 investors.
HNA said it plans to use the funds to expand its operations by buying aircraft and support six other projects, such as pilot training, engine maintenance and training facilities.
The mainland’s fourth-largest airline, whose A shares have been suspended from trading since early January, announced over the weekend that the share placement will be subject to shareholder and regulatory approval. Its share trading remained suspended on Monday.
The unit, Temasek Fullerton Alpha, will buy 700 million yuan worth of the shares, or 10 per cent of the total.
In January, the Hainan province-based carrier said in a filing to the Shanghai Stock Exchange that important matters related to the company were being planned, adding that is was not clear whether those plans would amount to a major asset restructuring.