(Yicai Global) June 25 -- Shares of Shanghai International Airport, which runs Pudong International Airport, surged after the company set out a preliminary asset restructuring plan aimed at helping it operate the Chinese city’s two main airline hubs in a more efficient and coordinated manner.

Shanghai International [SHA:600009] closed 4.5 percent higher today at CNY51.07 (USD7.91), after soaring by the daily 10 percent trading limit at the market open. The stock had been suspended since June 10 pending a statement on its reorganization.

The plan, disclosed late yesterday, consists in issuing new shares for CNY6 billion (USD 927.6 million) to its controlling shareholder Shanghai Airport Authority. The money raised will be used to buy the assets of Shanghai Hongqiao International Airport, Shanghai Airport Authority Aviation Logistics Development, and the fourth runway of Pudong International Airport.

Shanghai International has not yet completed a valuation of the assets, so the final cost is still to be determined, it said. Through the transaction, Shanghai Airport Authority’s stake in the listed company is expected to increase significantly from the current 53.3 percent.

The reorganization will strengthen Shanghai’s position as an international aviation hub, optimize route and flight resource allocation at the two airports, increase potential international freight volume, and drive the development of nearby regional airports, Shanghai International added.

Before the coronavirus outbreak in 2019, Pudong Airport ranked second for passenger throughput in China, with Hongqiao eighth. It has also been the country’s biggest cargo handler for many years.

Editor: Futura Costaglione