New Ground Handling Joint Venture For PVG And SHA

Air China Limited and Hong Kong Airport Services Limited have entered into a joint venture agreement with Shanghai Airport Authority and Shanghai International Airport Co., Ltd. to establish Shanghai International Airport Services Co., Ltd. to provide airport ground handling services at Shanghai Pudong International Airport and Shanghai Hongqiao International Airport.

Air China is a China-based airline company that provides air passenger transport, freight transport and related services. Hong Kong Airport Services is a Hong Kong-based provider of airport ground handling services, Shanghai Airport Authority is a China-based provider of airport ground handling services related to domestic and overseas transport, and Shanghai International Airport is a China-based provider of ground support services to domestic and overseas transport enterprises. Pursuant to the agreement, Shanghai International Airport Services will have a term of 20 years from its establishment date. Air China, Hong Kong Airport Service, Shanghai Airport Authority and Shanghai International Airport will pay a contribution of CNY86.40 million ($13.68 million), CNY90 million ($14.24 million), CNY36 million ($5.7 million)and CNY147.60 million ($23.36 million), to hold 24%, 25%, 10% and 41% stakes respectively in the registered capital of Shanghai International Airport Services. Mayer Brown, LLP is acting as advisor to Hong Kong Airport Services.

Deal Type Partnership Sub-Category Joint Venture Deal Status Announced: 2012-03-30 Deal Participants Partner 1 (Company) Shanghai International Airport Co., Ltd Partner 2 (Company) Shanghai Airport Authority Partner 3 (Company) Hong Kong Airport Services Limited Partner 4 (Company) Air China Limited Copyright 2012 MarketLineAll Rights Reserved