HNA-Caissa Travel Group Co. says it has abandoned plans to acquire HNA Group’s shareholding in Capital Airlines (China) (JD, Beijing Daxing International) after it failed to secure the requisite regulatory approvals on time.
The firm, which provides travel and tourism-related services in China and internationally, had previously planned to consolidate the airline and its holding firm for use in supplementing its tourism services. Capital Airlines operates regular passenger flights throughout China as well as to South Korea, the Maldives, Vietnam, Spain, Japan, and Thailand.
In a Shenzhen stock exchange disclosure, the HNA Group affiliate said though it had now abandoned plans to acquire the airline, it would still proceed with plans to raise CNY8 billion (USD1.2 billion) through a private share placement. The funds will now, however, be used for a domestic marketing platform and to boost cruise sales by establishing online and offline cruise experience centres in China and abroad in partnership with international cruise companies.
