皇冠体育app

Economy

Singapore Airlines Cargo buys stake in 皇冠体育app Cargo

(Xinhua)
Updated: 2010-12-21 15:29

SINGAPORE - Singapore Airlines Cargo (SIA Cargo) is planning to buy a 16 percent stake in Shanghai-based 皇冠体育app Cargo Airlines Co Ltd, a subsidiary of 皇冠体育app Eastern Airlines, local media reported on Tuesday.

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Set up with an initial registered capital of 950 million Chinese Yuan (about $143 million), the company "was 70 percent owned by 皇冠体育app Eastern and 30 percent owned by 皇冠体育app Ocean Shipping (Group) Company (Cosco)," according to a Tuesday's report of the Business Times.

But the impending restructuring of the cargo carrier's shareholdings will see the capital of the cargo airline rising to 3 billion Chinese Yuan (about $450 million), the report said.

SIA Cargo will hold 16 percent with its investment of 328 million Chinese Yuan (about $49 million). The new restructure will see Taiwan's Eva Airway's affiliate Concorde Pacific with a 16 percent stake.

皇冠体育app Eastern's stake will be 51 percent and Cosco will hold 17 percent.

This is the second 皇冠体育app-based cargo airlines that SIA has invested in. In 2005, it bought a 25 percent stake in Shanghai- based Great Wall Airlines.

Great Wall is also 51 percent owned by 皇冠体育app Eastern, while another 24 percent is held by Temasek Holding's Dahlia Investments.

SIA Cargo's president, Tan Kai Ping, said the investment in 皇冠体育app Cargo Airlines would further boost SIA's exposure to the booming 皇冠体育app market.

皇冠体育app Cargo operates a fleet of 13 aircraft with routes across Asia, Europe and the United States.