(Reuters) -China’s Sichuan Airlines will receive a capital contribution of 12 billion yuan ($1.69 billion) from its shareholders in a bid to supplement working capital and reduce financial security risks, major investor China Southern Airlines said on Friday.
China Southern, the country’s largest airline, will invest a total of 4.68 billion yuan in Sichuan Airlines, it said in an exchange filing.
Additionally, China Southern will also transfer one Airbus A330-300 aircraft for around 485 million yuan.
The contribution will “expand the scope of corporate development and enhance the risk resistance capacities of Sichuan Airlines,” China Southern said.
The 4.68 billion yuan investment will be made in three instalments, including a 2.34 billion yuan cash payment, another 1.40 billion yuan in cash and kind containing the aircraft transfer and a final 936 million yuan cash payment before Mar. 31, 2025.
($1 = 7.1035 Chinese yuan renminbi)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Devika Syamnath and Tasim Zahid)
