Hainan Airlines plans to buy 40% stake in Yunnan Lucky Air for RMB842m
Hainan Airlines (600221) plans to purchase a 40 percent stake in Yunnan Lucky Air for 842 million yuan, and a 21.74 percent stake in Tianjin Air for 694 million yuan from related parties, reports yicai.com, citing a company filing.
After the completion of the share purchases, Hainan Airlines will become the second-largest shareholder of Lucky Air, and increase its shareholding in Tianjin Air to 22.57 percent.
Through the end of the first half, Lucky Air had total assets of 3.25 billion yuan and net assets of 1.66 billion yuan. It recorded first half revenue of 1.21 billion yuan, and net profit of 19 million yuan.
During the same period, Tianjin Air reported total assets of 12.6 billion yuan and net assets of 2.44 billion yuan.
Tianjin Air reported first half revenue and net profit of 1.81 billion yuan and 28 million yuan, respectively.
In addition, Hainan Airlines plans to inject one billion yuan into Grand China Aviation Technik to boost the latter’s registered capital to 2.08 billion yuan. Its stake in Grand China Aviation Technik will increase to 48.08 percent.
Grand China Aviation Technik had total assets of 1.48 billion yuan and net assets of 1.09 billion yuan through the end of 2010.
Hainan Airlines posted a 31.32 percent year-on-year growth in third quarter net profit to 1.61 billion yuan. For the first three quarters, net profit increased 28.09 percent year-on-year to 2.28 billion yuan.