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Grand China Air to seek Hong Kong listing by H2 2007

11-Jul-2006

Beijing (XFNews-ASIA) - Grand China Air, formed from the merger of six carriers led by Hainan Airlines Co Ltd (SHA 600221; SHB 900945), is expected to list in Hong Kong by the second half of 2007, Caijing magazine reported.


The report quoted Hainan Airlines Group (HNA) executive president Li Xianhua as saying that HNA is likely to privatize Hainan Airlines Co Ltd, to pave the way for the Grand China Air listing.

HNA also plans to spend around one bln yuan to buy out minority stakes in units like Xinhua Airlines, Shanxi Airlines and Chang'an Airlines, the report said.

Last month, the Ministry of Commerce approved the establishment of Grand China Air, which has total registered capital of 3.09 bln yuan.

The Hainan government is the largest shareholder in Grand China Air with a 48.61 pct stake. Investor George Soros holds 18.64 pct with the remaining 32.75 pct held by HNA and its associates.

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