Report by : Gan Yung Chyan
/ KUCINTA SETA
In the evening of 11 June 2019, Hainan Airlines Holdings Co., Ltd. (hereinafter referred to as HNA Holdings) issued an announcement to disclose the framework agreement for the restructuring of GX Airlines, short for Guangxi Beibu Gulf Airlines.
The agreement reveals that HNA Holdings and Guangxi Beibu Gulf Investment Group Co., Ltd. (hereinafter referred to as Beibu Gulf Investment) and Guangxi Airport Management Group Co., Ltd. (hereinafter referred to as Guangxi Airport Group) have reached a consensus and agreed to adopt equity transfer, capital increase and share expansion.
Under the agreement, GX Airlines will undergo equity restructuring which will see the Guangxi government taking stakes in the airline through Beibu Gulf Investment and Guangxi Airport Group. After the completion of the restructuring, Beibu Gulf Investment will hold 71.2 per cent stake while Guangxi Airport Group and HNA Holdings will hold 4.8 per cent and 24 per cent stakes respectively in the Guangxi airline.
The above equity adjustments may be made by cash or by assets approved by the three parties and approved by the three parties.
GX Airlines is the third HNA airline member in China to undergo equity restructuring in two years after Urumqi Air and Capital Airlines.
As of 16 June 2019, GX Airlines operates domestic flights in China as well as international flights to Singapore and Suvarnabhumi from Nanning.
/ KUCINTA SETA
In the evening of 11 June 2019, Hainan Airlines Holdings Co., Ltd. (hereinafter referred to as HNA Holdings) issued an announcement to disclose the framework agreement for the restructuring of GX Airlines, short for Guangxi Beibu Gulf Airlines.
The agreement reveals that HNA Holdings and Guangxi Beibu Gulf Investment Group Co., Ltd. (hereinafter referred to as Beibu Gulf Investment) and Guangxi Airport Management Group Co., Ltd. (hereinafter referred to as Guangxi Airport Group) have reached a consensus and agreed to adopt equity transfer, capital increase and share expansion.
Under the agreement, GX Airlines will undergo equity restructuring which will see the Guangxi government taking stakes in the airline through Beibu Gulf Investment and Guangxi Airport Group. After the completion of the restructuring, Beibu Gulf Investment will hold 71.2 per cent stake while Guangxi Airport Group and HNA Holdings will hold 4.8 per cent and 24 per cent stakes respectively in the Guangxi airline.
The above equity adjustments may be made by cash or by assets approved by the three parties and approved by the three parties.
GX Airlines is the third HNA airline member in China to undergo equity restructuring in two years after Urumqi Air and Capital Airlines.
As of 16 June 2019, GX Airlines operates domestic flights in China as well as international flights to Singapore and Suvarnabhumi from Nanning.
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