(Yicai Global) Feb. 13 -- Tianjin Airlines Co., a unit of cash-strapped Chinese conglomerate HNA Group Co., will receive a capital injection of CNY400 million (USD63.5 million) from an investment platform linked to Tianjin municipal government as part of efforts to replenish funds for future development.
Tianjin Airlines has signed a capital increase framework agreement with Tianjin Bonded Area Investment Co., an original investor in the airline, Haikou-based HNA Group said in a statement.
HNA Group has been caught up in a cash squeeze of late after a series of overseas mergers and acquisitions over recent years, and has turned to selling assets and increased efforts to raise new funds. The company has participated in at least 40 cross-border deals since 2010, while its total liabilities have hit CNY250 billion (USD39.6 billion), incomplete data shows.
With the agreement, Tianjin Airlines and Tianjin Bonded Area Investment will jointly audit and evaluate the carrier's operations before the end of the year. Tianjin Bonded Area Investment aims to help Tianjin airport become a regional aviation hub.
Tianjin Bonded Area Investment is an investment platform set up by Tianjin Port Bonded Area State-Owned Assets Administration Bureau. As a government-backed investor, it participated in the establishment of Tianjin Airlines in 2009 and currently holds a 4.18 percent stake.