Bloomberg News

China Southern Air to Raise $314 Million in Share Sale to Parent

June 11, 2012

China Southern Airlines Co. (1055), Asia’s biggest carrier by passengers, will raise as much as 2 billion yuan ($314 million) selling new stock to its state-owned parent to help pare debts.

China Southern Air Holding Co. will buy 465.1 million A- shares at 4.30 yuan each, according to a Hong Kong exchange filing yesterday. That’s an 8.1 percent discount to the last closing price of 4.68 yuan. The carrier will resume trading in Hong Kong today, ending a halt pending the announcement.

The sale “will help the company to improve its financial condition, satisfy the capital needs of its business development, maintain its competitive advantage and ensure its sustainable and sound development,” China Southern said in yesterday’s statement.

Air China Ltd. (601111) also announced a 1 billion yuan share sale to its state-controlled parent in April.

China Southern’s net income fell 74 percent in the first quarter to 319 million yuan. The company has a debt-to-asset ratio of 49 percent, compared with the 35 percent average for carriers worldwide, according to data compiled by Bloomberg.

To contact Bloomberg News staff for this story: Alexandra Ho in Shanghai at aho113@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus