HNA unit Hainan Airlines to increase stakes in three carriers
Hainan Airlines, a unit of China’s HNA Group, moved to increase its stakes in three domestic carriers for 5.6 billion yuan ($850 million), continuing a buying spree as Beijing steps up scrutiny of the parent company’s acquisitions.
Hainan Airlines plans to buy 10.3 percent of China Xinhua Airline Group Co., 37.6 percent of Changan Airlines and 49.4 percent of Shanxi Airlines Co. from minority holders, the carrier said in a filing to the Shanghai stock exchange. Part of the investment is from another HNA affiliate, according to the filing.
After the deal, Hainan will hold 62 percent of Xinhua, 73 percent of Changan and 97 percent of Shanxi. The Changan and Shanxi transactions require shareholder approval.
The purchase is the latest step by the nation’s fourth-largest airline to grow through acquisitions without HNA’s backing. Hainan in June said it was looking to buy assets on its own outside China, undeterred by potential headwinds posed by regulatory scrutiny of its parent’s overseas deals.
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