China Southern Airlines major shareholder pledges no stake reduction

China Southern Airlines (HKEX:1055) announced today that its controlling shareholder, China Southern Air Holding Company Limited ("CSAH"), has pledged not to reduce its shareholdings in the company for a period of 18 months. The commitment, detailed in a Letter of Undertaking, aims to bolster investor confidence and support the long-term stability and healthy development of the airline. CSAH and its Concert Parties, which collectively hold 66.52% of China Southern Airlines' shares, cited optimism about the future of China's aviation industry and recognition of the company's intrinsic investment value as reasons for the voluntary undertaking. This pledge includes any additional shares obtained through capital reserve conversion, stock dividends, or rights issues. The China Southern Airlines board believes this move is beneficial to all shareholders, especially minority investors.