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https://www.channelnewsasia.com/new...ceive-us-4-billion-capital-injection-11739494
https://www.channelnewsasia.com/new...ceive-us-4-billion-capital-injection-11739494
BusinessChina Southern Airlines to receive US$4 billion capital injection
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
FILE PHOTO: The company logo of China Southern Airlines is displayed at a news conference in Hong Kong, China March 27, 2018. REUTERS/Bobby Yip
20 Jul 2019 02:00PM (Updated: 20 Jul 2019 08:36PM)
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SHANGHAI: China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan (US$4.36 billion) of capital from three investors, the firm announced on Saturday (Jul 20).
The Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund will each inject 10 billion yuan into the airline, as part of the country's efforts to diversify ownership structures among state-owned firms.
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The move will significantly improve the company's debt-to-asset ratio, generate funds for its growth and help modernize its decision-making mechanisms, the announcement said.
It will also use the funds to serve its main air transportation business, pay for construction related to China's Belt and Road Initiative and support aviation development in cities in the southern province of Guangdong.
China Southern is one of 96 enterprises owned and administered directly by the central government. Its profits slumped nearly 50 per cent last year as a result of rising fuel costs and a weak yuan currency.
Source: Reuters/aa
Read more at https://www.channelnewsasia.com/new...ceive-us-4-billion-capital-injection-11739494
https://www.channelnewsasia.com/new...ceive-us-4-billion-capital-injection-11739494
BusinessChina Southern Airlines to receive US$4 billion capital injection
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
FILE PHOTO: The company logo of China Southern Airlines is displayed at a news conference in Hong Kong, China March 27, 2018. REUTERS/Bobby Yip
20 Jul 2019 02:00PM (Updated: 20 Jul 2019 08:36PM)
Share this content
SHANGHAI: China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan (US$4.36 billion) of capital from three investors, the firm announced on Saturday (Jul 20).
The Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund will each inject 10 billion yuan into the airline, as part of the country's efforts to diversify ownership structures among state-owned firms.
Advertisement
The move will significantly improve the company's debt-to-asset ratio, generate funds for its growth and help modernize its decision-making mechanisms, the announcement said.
It will also use the funds to serve its main air transportation business, pay for construction related to China's Belt and Road Initiative and support aviation development in cities in the southern province of Guangdong.
China Southern is one of 96 enterprises owned and administered directly by the central government. Its profits slumped nearly 50 per cent last year as a result of rising fuel costs and a weak yuan currency.
Source: Reuters/aa
Read more at https://www.channelnewsasia.com/new...ceive-us-4-billion-capital-injection-11739494