China Southern Airlines parent continues to diversify ownership structure with new capital injection

China Southern Airlines announced (21-Jul-2019) controlling shareholder China Southern Air Holding Company (CSAH), State-owned Assets Supervision and Administration Commission of the State Council, Guangdong Hengjian Investment Holding Co Ltd, Guangzhou City Construction Investment Group and Shenzhen Penghang Equity Investment Fund Partnership entered a capital increase agreement as part of the equity diversification reform of CSAH. Guangdong Hengjian Investment Holding, Guangzhou City Construction Investment Group and Shenzhen Penghang Equity Investment Fund Partnership will each contribute CNY10 billion (USD1.45 billion) to the registered capital of CSAH. Proceeds will be primarily used in core air transport businesses and in line with the Belt and Road Initiative and the Guangdong-Hong Kong-Macau Greater Bay Area strategy. Following the capital increase, CSAH will remain a state owned enterprise. [more - original PR]