April 27, 2018 / 2:02 PM / 7 months ago

Hainan Airlines sells part of stake in Brazil's Azul to United's Calfinco

SHANGHAI (Reuters) - Hainan Airlines (600221.SS) plans to sell a fifth of its preference shares in Brazil’s Azul SA (AZUL.N) to United Continental UAL.N subsidiary Calfinco for $138.3 million.

The flagship carrier of HNA Group [HNAIRC.UL] said on Friday it was selling the shares as it expects to make a $42 million profit following Azul’s initial public offering in 2017.

This would boost the firm’s financial results and allow it to maintain good asset liquidity, it added.

Hainan Airlines paid $450 million for a 23.7 percent stake in Azul in 2016. As of April 24, it held 22.4 percent of the Brazilian airline’s preferred shares or a 21.6 percent economic stake, according to Azul’s website. It said its economic stake would fall to 17.28 percent after the deal.

United Continental said in a separate statement that the deal would lift Calfinco’s economic stake in Azul to 8 percent, from 3.8 percent previously.

HNA, the aviation-to-financial services conglomerate, has been selling overseas real estate and some of its biggest financial and strategic investments following a $50 billion acquisition spree over the past two years.

Hainan Airlines said in a separate statement to the stock exchange on Friday that it plans to issue up to $1 billion in offshore bonds. [nH9N1S2056]

Reporting by Brenda Goh; Editing by Alexander Smith

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below