Air China (0753.HK, AIRC.LSE, 601111.SH) will take a majority stake in Shenzhen Airlines by making a US$100 million capital injection into the company, Bloomberg reported. Air China, the country’s third-largest carrier, told the Hong Kong Stock Exchange that the investment would take its holding to 51% from 25%. Shenzhen International Holdings (0152.HK) will inject a further US$50.9 million into Shenzhen Airlines, giving it a 25% stake. Air China, which is keen to set up a hub in the Pearl River Delta, took management control of Shenzhen Airlines in December after police began investigating the company’s senior executive, Li Zeyuan. Following the restructuring, Li’s company, Shenzhen Huirun Investment, will see its stake in the airline drop to 24% from 65%. Air China added that a Shenzhen court has agreed to hear creditors’ bankruptcy case against Huirun and that the company’s liquidator waived the right to inject more capital into the airline.
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