GRAND China Airlines, a subsidiary of HNA Group, has won 8 billion yuan (US$1.2 billion) injection from a private-equity investor to pave the way for its listing in Hong Kong.
Chongqing Shenyin Longsheng Investment Co signed an agreement with Grand China Air last Saturday to inject the funds to help the carrier buy planes, repay short-term loans and issue shares in Hong Kong, the HNA Group, China's fourth-largest aviation group, said in an e-mailed statement yesterday.
Shenyin Longsheng is a PE fund targeting state-owned companies in infrastructure, transport and consumption industries. The size of the fund exceeds 20 billion yuan.
Grand China Airlines was set up in 2007 by merging four air carriers, including Shanghai-listed Hainan Airlines, to prepare for an initial public offering in Hong Kong. However, the plan was set aside as its price-earnings ratio was undervalued amid the global financial crisis.
The carrier now owns a 41.6 percent stake in Hainan Airlines and some stakes in Chang'an Airlines, Lucky Air, Hong Kong Airlines and Hong Kong Express Airways.
Chen Feng, chairman of HNA Group, said in an earlier report that Grand China Air plans to raise 10 billion yuan from PE investors before listing in Hong Kong this year.
HNA aims to create a comprehensive group with interest in airlines, logistics and financial services.


SOURCE: Shanghai Daily
Editorial Message 
This site contains materials from other clearly stated media sources for the purpose of discussion stimulation and content enrichment among our members only. does not necessarily endorse their views or the accuracy of their content. For copyright infringement issues please contact