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 countryÃ¢â‚¬™s fifth-largest carrier rise from 25 to 51 per cent. The Shenzhen municipal government will increase its share from 10 to 25 per […]
April 1, 2010
The Shenzhen municipal government will increase its share from 10 to 25 per cent with a CNY348 million investment, and controlling stakeholder Li ZeyuanÃ¢â‚¬™s 65 per cent will fall to 24 per cent, according to Air ChinaÃ¢â‚¬™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 ShenzhenÃ¢â‚¬™s fate in question and allowing Air China to step in.