Shenzhen Int'l Completes Shenzhen Air Stake Buy
Shenzhen International Holdings said it has completed the acquisition of a 24 percent stake in Shenzhen Airlines, lifting its interest in the airline to 49 percent and enhancing its exposure in the growing Chinese domestic aviation market.
Local government-backed Shenzhen International, an investment holding company with a focus on logistics and infrastructure facilities, agreed in May to pay CNY788.6 million yuan (USD$125 million) for the stake from Shenzhen Huirun Investment, which declared bankruptcy in January 2011.
The remaining 51 percent of Shenzhen Airlines was owned by Air China, Shenzhen International said in a statement late on Wednesday.
"Market demand for domestic air transportation has continued to grow, contributing to a sound operating environment and thereby good operating results for Shenzhen Airlines," said Shenzhen International chairman Guo Yuan in the statement.
Contributions from Shenzhen Airlines to the company jumped to HKD$187 million (USD$24 million) in the first half of 2011 from HKD$41.75 million a year earlier, it added.