Debt Free News

Citigroup to purchase Chinese airline?

December 21, 2006

In Hong Kong, it is being said that among several other interested parties, Citigroup Inc. may be looking to get in on a huge investor deal with on of China’s airlines. It is being reported to our debt free site that many would be investors are actually interested in getting into business with China’s Spring Airlines. At hand, are stakes in the airline – interested are many, but Citibank stands out as a major player here.

The Chinese airline is privately owned and it is being said that reports will be made public just after Christmas that may shed even more light on the possible deal with the banking giant and the Asian airline company.

One source who is said to work for the Chinese airline has said that more than a handful of interested investors have come forward to express a possible interest in the company.

These share placement deals are certainly attracting a big time US bank.
The same source at Spring Airlines also says that the company will not be selling the majority of its holdings either. In fact, the company is seeking approximately one fifth of it holdings to be sold to an interested party. We can also report that it is being said the beginning negotiations with Citigroup are already underway.

Spring Airlines is based in Shanghai, China. It is an airline company that has a no frill flyer type offering to its customers. It is a value airline.

Spring has received an approval from the Chinese government to seek investors and purchase ten new airplanes built by Airbus. The companies existing order with the European airplane maker is for the manufacturer’s popular A320 jet.
BY entering into this new phase of development, the Chinese airline hopes to generate $384 million from an investor to aid in the payment for these new planes and to develop the company further for a possible going public stock option in the next few years. for investors is said to be taking place a little over two years away.

At this debt free site, it is always interesting to gain the education we do from interesting investment stories such as this one. We are always looking to see what big banks are doing with their capital. It looks as though Citigroup is looking to a Chinese connection is an aspiring airline. If all goes well, there could be millions to be made out of this development for sure.

(419)