Media
Media
Singapore Airlines Cargo today agreed to pay US$50 million for a 16 percent of China Cargo Airlines Co, the freight arm of China Eastern Airlines.
Following an investment agreement signed in Shanghai, the parties will seek approval for China Cargo Airlines to be re-organised into a limited liability Chinese-foreign equity joint venture company. Its registered capital will increase from US$142 million to $450 million.
SIA Cargo’s investment in the reorganised company will amount to $50 million. The new shareholding structure will be China Eastern 51 percent, Cosco 17 percent, with Concord Pacific Limited (EVA Airways Affiliate company) and SIA Cargo each holding 16 percent.
“We are excited about the joint venture,” said SIA Cargo’s president Tan Kai Ping.
“It affords SIA Cargo greater participation in the booming cargo transportation sector in China and we look forward to working closely with our new partners.”
The deal is subject to regulatory approval, and if it goes ahead will strengthen Singapore Inc’s firm foothold in the mainland aviation market.
SIA and its parent Temasek already own 49 percent of Great Wall Airlines that falls under the control of China Eastern.
The new cargo stake will go some way towards erasing the disappointment of a failed 2008 bid by the Singapore duo to acquire a 24 percent stake in China Eastern for $923 million.
The bid was voted down by the China carrier’s shareholders who believed the offer price did not reflect the fair value of the airline.
China Cargo Airlines is a Shanghai-based company incorporated in the People’s Republic of China, with an initial registered capital of $142 million.
China Cargo Airlines operates a fleet of 13 aircraft comprising three Airbus A300 freighters, two Boeing 747-400 freighters, three Boeing 777 freighters and five McDonnell Douglas MD-11 freighters.
Its global route network extends to 26 destinations outside Shanghai, covering major cargo ports in China, Asia, Europe and the United States.
(Source:www.cargonewsasia.com)
qq.com