The air carrier said it plans to raise as much as 7 billion yuan (USD 1.09 billion) by selling as much as 20% of its shares to no more than 10 investors, including Temasek Fullerton Alpha Pte.
The sale proceeds will be used to fund plane purchases, aviation training, maintenance and airport business. A spokesman for Temasek confirmed the filing and declined to comment further.
Hainan Air’s move is seen to be aimed at funding a restructuring exercise to consolidate its aviation assets from its debt-laden parent HNA Group. The company also said it is looking to buy stakes in aviation training, maintenance business and airlines, valued at 10.5 billion yuan (USD 1.64 billion), from HNA and its subsidiaries.
Its controlling shareholder will change from Grand China Air to HNA Group and parties acting in concert, according to the statement. The ultimate controlling party will change from the Hainan branch of State-owned Assets Supervision and Administration Commission (SASAC) to the Cihang Foundation.
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