Hidden Hill Capital buys 10% stake in China Southern Airlines’ logistics unit for $114m

Hidden Hill Capital, the private equity arm of global investment manager GLP, has invested 745 million yuan ($114 million) in airline giant China Southern Airlines’ subsidiary China Southern Airlines Cargo Logistics (Guangzhou) Co., Ltd, according to a company statement on Wednesday.

Post the transaction, Hidden Hill Capital will own a 10 per cent stake in China Southern Airline Logistics, while China Southern Airlines will remain as its controlling shareholder.

The logistics company’s market valuation will jump to 1.82 billion yuan ($278 million), up 820 million ($125 million), post the transaction.

China Southern Airline Logistics said it will deploy the funding proceeds to upgrade its air cargo capacity and ground logistics infrastructure construction. It will also aim to build better synergy between air and ground transportation in the aviation logistics industry.

China Southern Airlines Logistics, which was set up by China Southern Airlines in 2018, operates a global freight business. The company has provided cargo services to 243 destinations in 44 countries and regions through over 3,000 flights a day.

“When we pursue mixed-ownership reform, we are seeking valuable insights and a vision to improve corporate governance and procedures to enhance our international competitiveness. We choose partners that understand the various elements of the logistics ecosystem and bring us a great wealth of knowledge that we can leverage across our four major business sectors — air cargo, modern warehousing, supply chain management, and e-commerce,” said He Xiaoqun, chairman of China Southern Airlines Logistics, in the statement.

The investor, Hidden Hill Capital is a two-year-old firm. As a part of GLP, it  is designed to invest in the logistics ecosystem including smart logistics, supply chain, logistic service, cold chain, and corporate ownership reforms. It has poured more than 6 billion yuan ($917 million) into about 50 startups such as China Eastern Airlines’ Eastern Air Logistics, Cosco Shipping, and Inceptio so far.

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.

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.