Hainan Airlines waives preemptive right in Grandstar Airlines equity sale

Hainan Airlines Holding (HNA Holdings) has decided to waive its preemptive right to acquire a 77.8948% equity stake in Grandstar Airlines, held by Hainan Airlines Group. The transaction, valued at a total of 369,924.7378 million yuan, involves Hainan Airlines Group transferring a 28.4784% stake to Hainan Cargo Co., Ltd. for 135,244.8813 million yuan, followed by an additional capital injection of 234,679.8565 million yuan through a 49.4164% equity transfer. This decision, approved by the board and requiring shareholder approval, will maintain HNA Holdings’ and its subsidiary’s current equity proportions in Grandstar Airlines, with no change to the consolidation scope.

Concurrently, HNA Holdings is adjusting its estimated 2025 daily operational related-party transaction amounts. The updated projections reflect an increase in procurement services from related parties, including ground support, flight maintenance, and cargo handling, with the total estimated procurement amount reaching 55.0319 million yuan. Sales to related parties are also expected to increase, particularly in chartered cargo income and flight maintenance services, with total estimated sales reaching 65.4286 million yuan.

These adjustments and the equity waiver are deemed necessary for operational needs and resource allocation, aiming to improve efficiency without negatively impacting Hainan Airlines Holding's financial condition or independence.