Shares of Spring Airlines surged 3.7% on the Shanghai Stock Exchange on Friday after the Shanghai-based budget carrier said it would invest in State-owned China Southern Airlines.
The low-cost carrier said that it would spend 846 million yuan (USD 123 million) to acquire 1.63% of China Southern's A-share nonpublic offering, making it the fifth largest shareholder in the airline. In a notice, China Southern said six other investors have also subscribed to the nonpublic offering, including parent China Southern Air Holding, China National Aviation Fuel Group and China Life Asset Management.
It also marked the second time that a domestic private carrier is investing in the nation's three largest State airlines - Air China, China Southern Airlines, and China Eastern Airlines.
China Southern plans to raise 9.5 billion yuan to acquire 41 aircraft and lightweight seats for its A320 fleet.
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