Baiyun Airport forgoes right to repurchase logistics company shares

Guangzhou Baiyun International Airport (SSE: 600004) announced it will not exercise its option to repurchase a 51% stake in Guangzhou Baiyun International Airport Aviation Logistics Services Co., Ltd. (now Guangdong Airport Authority Logistics Co., Ltd.) from its parent company, Guangdong Airport Authority. This repurchase right stemmed from a 2020 asset swap agreement. The company cited strategic focus on its core passenger transport business, the significant capital demands of the ongoing Phase III expansion of Baiyun Airport, and the higher expected returns from investing in the expansion project as reasons for the decision. The company believes that forgoing the repurchase will support its goal of becoming a world-class aviation hub. The decision will not materially impact the company’s financial condition or operating results.