News
HNA accelerates expansion drive with new investments
July 22nd 2016
HNA Group’s Hainan Airlines this week said it would invest 915.2 million yuan ($137 million) to increase its holding in Shanghai-based Yangtze River Express Airlines from under one per cent to 11.6%. Read More » The move is aimed at strengthening both airlines’ positions in the Shanghai and east China markets.
HNA Logistics Group also will invest 2.83 billion yuan to become the biggest shareholder in Yangtze River Express, with a 35.13% equity, the conglomerate said on Tuesday, as it raised the carrier’s registered capital to five billion yuan. HNA Group will hold a 4.48% stake in Yangtze River and its airline subsidiaries, Haihang Airlines Group and Lucky Air, will have equity of 14.73% and 9.95%, respectively.
Separately, Hainan Airlines announced on Monday that it had agreed to buy 25% of convertible TAP Portugal bonds, valued at 30 million Euros, from Brazilian carrier, Azul Brazilian Airlines. The commitment will give HNA a seat and voting power on TAP’s board.
Azul acquired 120 million Euros of TAP's convertible bonds earlier this year in a transaction that was financed by a $150 million short-term loan from Hainan Airlines and linked to HNA's acquisition of a 23.7% stake in the Brazilian carrier.
Last week, Mubadala, the Abu Dhabi investment and development firm, agreed to sell an 80% stake in MRO provider, SR Technics, to HNA Aviation for $2.8 billion. Mubadala is SR’s sole shareholder. It will retain a 20% share in the Zurich-based MRO. The transaction is subject to anti-trust and regulatory approvals.
HNA’s Hainan Airlines this week said it would return to Sydney from September, with twice a week A330 frequencies, from both Changsha and Xian. The airline also plans to offer nonstop services from Chengdu and Chongqing to New York from March and June, respectively.
