Industry Addendum
Hong Kong Airlines buys into SIA Engineering joint venture
February 1st 2018
Hong Kong Airlines has joined Malaysia Airlines (23.53%), Garuda Indonesia (17.65%), Royal Brunei (11.76%) and SIA Engineering Company Ltd (47.06%) as a shareholder in Pan Asia Pacific Aviation Services (PAPAS). Read More » Under the agreement, the HNA-controlled carrier could acquire a holding of up 30% in PAPAS in two tranches of new shares, subject to the approval of PAPAS shareholders and the relevant regulatory bodies.
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Mainboard listed SIA Engineering Company Ltd (SIAEC) said Hong Kong Airlines will invest US$2.8 million for a 15% share in PAPAS through a subscription of new shares. Subject to certain conditions the carrier will have the right to increase its stake to 30%, at an estimated investment of up to $4.31 million. SIAEC’s holding in PAPAS will be reduced to 40% after the first share issue to Hong Kong Airlines.
