Hainan Airlines takes 23% stake in TAP Portugal

Hainan Airlines plans to take a 23% shareholding in TAP Portugal, with a bond buy from Azul Brazilian Airlines, in a E30m (US$33m) transaction. According to the Shanghai Stock Exchange, Hainan Airlines intends to buy the stake in TAP through the purchase of 25% convertible bonds from Azul. Azul bought $100m of bonds from TAP in March 2016, giving it a 40% potential interest in the Portuguese carrier. This latest move bolsters the Chinese carrier’s presence in both the European and South American markets, following the purchase of a 23.7% stake in Azul for $450m in Nov 2015, and a 7% stake in the Atlantic Gateway consortium—a part-owner of TAP. Hainan’s latest investment in TAP gives it a 13.06% economic interest in TAP, along with voting power on the TAP board from a seat on the 12-person director’s list. <br/>