Shenzhen International (HKG:0152) expects its stake in Shenzhen Airlines to dilute after the firm introduced a new investor into the business, according to a Hong Kong bourse filing Thursday.
Shenzhen Airlines announced plans to raise 16 billion yuan in capital earlier this year, with Shenzhen International recusing itself from participating.
Shenzhen International said a new investor, Shenzhen Kunhang Investment Partnership, agreed to invest an initial 2 billion yuan in the entity, while Air China will funnel an additional 2.08 billion yuan.
The investments will dilute Shenzhen International's stake in Shenzhen Airlines to around 28.09% from 49%, with Air China continuing to hold 51% of the business, while Kunhang Investment will hold 20.91%