Deals
American Air to Invest $200 Million in China Southern Deal
- Chinese carrier to sell 270.6 million H-shares at HK$5.74 each
- Deal part of strategic cooperation that includes code share
A China Southern Airlines Co. aircraft takes off at Sydney Airport in Sydney, Australia, on Monday, June 22, 2015.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
American Airlines Group Inc. agreed to acquire a minority stake in China Southern Airlines Co. for $200 million, cementing a partnership between the top carriers in the U.S. and Asia.
China Southern will issue 270.6 million shares in its Hong Kong-listed company to the world’s largest airline at HK$5.74 apiece, the Guangzhou-based carrier said in a stock exchange statement Tuesday. That is a premium of 5.3 percent over the closing price before Bloomberg News reported the talks last week. The two airlines also agreed on code sharing, according to the statement.