News
Air China progresses with plans to acquire controlling equity in Shandong Airlines parent
June 16th 2022
Air China has signed a framework agreement to acquire the equity interest of Shandong Aviation Group held by Shansteel Financial Holdings and subscribe for the increased registered capital of Shandong Aviation Group. Read More » In a regulatory filing to the Stock Exchange of Hong Kong, the company said it intended to hold no less than a 66% equity interest in, and obtain control of, Shandong Aviation Group. Shandong Aviation Group is the parent company of Shandong Airlines. “The framework agreement only is an agreement of intent,” Air China said. “At the date of this announcement, the company has not completed due diligence, the audit and valuation of Shandong Aviation Group Corporation and the terms and conditions of the formal transaction documents have not been finalised.” Air China announced plans to acquire Shandong Aviation Group at the end of May. At present, Air China holds 49.4% of Shandong Aviation Group. Shandong Airlines is 22.8% owned by Air China and 42% by Shandong Aviation Group.
