China Southern Takes 4% Stake in Xiamen Air for 627 Million Yuan
By Lena Ge, China Aviation Daily | Dec. 09, 2015
China Southern Airlines (CZ) has signed a Share Transfer Agreement with to Xiamen C&D Corporation Limited for the purchase 4% equity interests in Xiamen Airlines (MF), the Guangzhou-based carrier said in a statement on Tuesday night.
The transaction is valued at 626.67 million yuan.
In July, the board approved Jizhong Engergy Group to transfer its all 15% state in Xiamen Airlines, the airline said. The state-owned coal enterprise sold its stake to Xiamen C&D at a total price of 2.2 billion yuan; then transferred the 15% stake in Xiamen Air to China Southern (4%) and Fujian Investment (11%).
Upon completion of the acquisition, China Southern increased its stake in Xiamen airlines from current 51% to 55%. The shareholding in Xiamen Airlines will be 55% held by China Southern, 34% by Xiamen C&D and 11% by Fujian I&D Group.
In the first three quarters of 2015, Xiamen Airlines achieved a net profit of 1.14 billion yuan.
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