State-owned Beijing Tourism Group plans to acquire more shares in Capital Airlines from the target's parent, debt-laden conglomerate HNA Group, as the seller continues to shed assets to remain liquid.
BTG and Hainan-based HNA penned a framework agreement for the deal on Tuesday, which will see the buyer increase its stake by buying shares and injecting capital, an unidentified source told Yicai Global. The two firms are Beijing Capital Airlines' only shareholders, with HNA owning almost 83% of the firm before the deal.
The embattled conglomerate will remain in charge of daily safety, production and operations management at Capital Airlines after the transaction, according to the agreement, which did not specify how much equity it will hold post-sale.
Industry insider Lin Zhijie believes that government buy-ins could continue across the rest of HNA's carriers, apart from its flagship Hainan Airlines, which is based in HNA's home province of Hainan.
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