Shenzhen International to acquire 10% stake in Air China Cargo for $237m

Shenzhen International, an indirect wholly-owned subsidiary of Hong Kong-listed Shenzhen International Holdings, has agreed to acquire a 10 per cent stake in Beijing-based cargo airline giant Air China Cargo Co., Ltd for 1.57 billion yuan ($237 million), according to a company filing with The Stock Exchange of Hong Kong on November 9.

The acquirer has partnered with Air China Cargo’s existing investors — Aviation Capital, Cathay Pacific China Cargo, and Fine Star Enterprises — besides other investors to collectively inject a corpus of 4.86 billion yuan ($733 million) in Air China Cargo.

Shenzhen International (SZ) plans to seed 1.57 billion yuan ($237 million) in cash payment, while the rest, or 3.29 billion yuan ($497 million), will be settled by group investors.

Upon the completion of the deal, Aviation Capital will remain the largest shareholder in Air China Cargo with around 45 per cent equity interest, followed by Cathay Pacific China Cargo (12.24 per cent), Fine Star Enterprises (11.75 per cent), and Shenzhen International (SZ) (10 per cent). The other investors will hold an aggregate of 21 per cent.

The lump sum is set to be completed within 10 working days after the payment notice to the new investors. 

Backed by Shenzhen Municipal’s Assets Supervision and Administration Commission, Shenzhen International Holdings primarily operates logistic infrastructure projects and toll road business across Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, and Pan-Bohai Rim. In addition, the group also owns 49 per cent equity interest in Shenzhen Airlines. 

Shenzhen International (SZ), a part of Shenzhen International Holdings, operates as an investment holding company. 

“The investment provides the Group with an opportunity to commence business collaboration with Air China Cargo, which is expected to create business synergies for both and allow the Group to explore air cargo logistics business to enhance its comprehensive logistics service capabilities and explore room for profit growth,” said Shenzhen International Holdings in the announcement. 

Air China Cargo, set up in 2003, has been engaged in the businesses of air cargo, air mail transportation, air cargo terminal operation, and logistics. It generated sales earnings of 10.5 billion yuan ($1.6 billion) and 2.1 billion yuan ($316 million) in net profit in January-July 2020.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.