CHINA: Air China takes over Shenzhen for $100M

Air China will boost its profile in the Pearl River Delta region by taking control of Shenzhen Airlines with a CNY682.1 million (US$99.8 million) investment that will see its stake in the country’s fifth-largest carrier rise from 25 to 51 per cent. The Shenzhen municipal government will increase its share from 10 to 25 per […]


Air China will boost its profile in the Pearl River Delta region by taking control of Shenzhen Airlines with a CNY682.1 million (US$99.8 million) investment that will see its stake in the country’s fifth-largest carrier rise from 25 to 51 per cent.

The Shenzhen municipal government will increase its share from 10 to 25 per cent with a CNY348 million investment, and controlling stakeholder Li Zeyuan’s 65 per cent will fall to 24 per cent, according to Air China’s filing with the Hong Kong Stock Exchange.

Li Zeyuan, along with former Chairman Li Kun, were placed under arrest for unspecified financial crimes recently, placing Shenzhen’s fate in question and allowing Air China to step in.