(Yicai Global) Aug. 16 -- The founding chairman of Fangda Group Industrial, the new owner of Hainan Airlines Holding, has become the sixth-largest shareholder in Chinese carrier Juneyao Airlines.
Fang Wei bought a 1.49 percent stake in Juneyao Airlines in the secondary market, the Shanghai-based carrier said late yesterday. Fang was not among the top 10 shareholders when Juneyao Airlines released its first-quarter earnings report in April.
Fangda acquired Hainan Airlines last December for CNY38 billion (USD5.6 billion) and a promise of CNY3 billion (USD442 million) in risk relief funds. And after a new planned CNY10.9 billion capital injection, Fangda will own 42.5 percent of Hainan Airlines, up from 25.3 percent
Juneyao Airlines also unveiled yesterday that last week it completed a CNY3.3 billion (USD486.3 million) private placement with 19 investors, but Fang was not among them. After the share sale, Juneyao Group remained the biggest shareholder of Juneyao Airlines with a 45.7 percent stake, followed by a China Eastern Airlines-backed investment institution with 12.5 percent.
It is unknown when Fang started to buy shares in Juneyao Airlines, so it is impossible to estimate his total investment in the firm. His stake is worth CNY439 million (USD64.7 million), based on the issue price of the private placement.
Editor: Futura Costaglione