Shenzhen International Completes 24% Acquisition of Shenzhen Airlines
04-Jan-2012 Shenzhen International Holdings Limited ("Shenzhen International" or the "Company") (HKEx: 00152) announced that the Company has completed the acquisition of a 24% equity interest in Shenzhen Airlines Company Limited ("Shenzhen Airlines") on 4 January 2012. As at the completion of the transaction, Shenzhen International has increased its indirect equity interest in Shenzhen Airlines from 25% to 49%, while the remaining 51% is owned by Air China Limited ("Air China") (HKEx: 00753).
Mr. Guo Yuan, Chairman of the Company, said, "The market demand for domestic air transportation has continued to grow, contributing to a sound operating environment and thereby good operating results for Shenzhen Airlines. We believe this transaction can further enhance returns for the Company's shareholders."
In the first half in 2011, the domestic economy of China maintained steady growth, contributing to a continuous increase in passenger air trips per capita. Shenzhen Airlines contributed a profit of HK$187 million to the Company, representing an approximate 3.5-fold increase from a profit of HK$41.75 million in the corresponding period of the previous year.