Hainan divests large shareholding in Tianjin Airlines

Hainan Airlines is to sell a 48% stake in Tianjin Airlines to the holding firm HNA Aviation. The transaction is being conducted at CNY1.70 per share. Hainan Airlines says the overall value of the transaction is just over CNY6.68b (US$944m). It held 95.8% of Tianjin Airlines prior to the agreement, with a Tianjin free trade zone investment firm taking the balance. As a result of the transaction HNA Aviation, with 48%, will just overtake Hainan Airlines as the largest shareholder. Hainan Airlines will retain 47.8% while the investment firm will continue to hold its 4.2%. The divestment is being carried out as part of a broader govt strategy to "fully utilise" the services of Tianjin Airlines during the development of Beijing, Tianjin and Hebei as an international air transport hub, says Hainan Airlines. <br/>