China Southern Airlines Co signed an agreement on Tuesday to sell a minority stake to American Airlines Group Inc for $200 million, in a deal which links top carriers in the Asian and US markets.
China Southern will issue 270.61 million Hong Kong-listed H shares at HK$5.74 per share, or 2.68 percent of the enlarged share capital of the airline, to American Airlines. The price represents a 4.6 percent premium on the previous trading day's closing price.
The deal also means China's three biggest carriers have all tied up with overseas airlines, with Delta Air Lines buying 3.55 percent of China Eastern Airlines in 2015 and mutual stakes bought between Hong Kong's Cathay Pacific Airways and Air China in 2006.
China Southern in a regulatory filing on Tuesday said that the two companies "may seek to increase cooperation in code sharing", as well as sales, passenger loyalty programs and airport facilities.
The International Air Transport Association predicts China will surpass the US to become the biggest aviation market in terms of passengers by 2024.
China Southern Airlines Co signed an agreement on Tuesday to sell a minority stake to American Airlines Group Inc for $200 million, in a deal which links top carriers in the Asian and US markets.
