Avic Capital unit to sell stakes in aviation firms

Avic Capital (SSE:600705) announced its subsidiary, Avic Investment Holding, intends to transfer its holdings in two aviation firms to its parent company, China Aviation Industry Corporation (AVIC), through a non-public agreement. This involves selling 160,136,566 shares (5.76% of the total) of AVIC Aircraft and 22,677,248 shares (0.47% of the total) of AVIC Airborne Systems. The total consideration for the share transfer is valued at CNY 4,066,610,041.58. Upon completion, Avic Capital and its subsidiaries will no longer directly hold shares in these two aviation companies. The board has already approved this related-party transaction, which is subject to shareholder approval, regulatory clearances, and exchange verification. This move aims to optimize the company's asset allocation and replenish working capital.