Air China pays 700 million yuan for a 24% stake in Air China Cargo

Air China Cargo became a wholly-owned subsidiary of Air China Limited after the airline acquired the remaining 24-percent stake from the Capital Airport Group for 700 million yuan.
Air China made the announcement after signing the acquisition agreement. The airline already bought a 25-percent stake on Sept. 30, 2008. Upon completing the transaction, its stake in Air China Cargo increased from 76 to 100 percent. Air China officials said the company’s board of directors expect further growth in air cargo operations and plans to increase the airline’s investment in the industry as a strategic measure to inject more aviation-related resources and capacity. Air China Cargo, one of the country’s largest air cargo companies, was jointly formed in 2003 by Air China, CITIC Pacific Ltd. and the Capital Airport Group with a total investment of 22 billion yuan. The three founding stakeholder companies, respectively, held 51 percent, 25 percent and 24 percent of the shares. On Jan. 3rd, 2008, Air China’s wholly owned subsidiary China National Aviation Co. Ltd. acquired from a CITIC Pacific subsidiary, Gold Leaf Enterprises Holdings Ltd., the 25-percent stake for 857 million yuan, upping its ownership to 76 percent.