Hainan Airlines said on Wednesday it planned to sell its entire holdings in Brazilian airline Azul SA, without disclosing any further details, The Paper reported.
Hainan Airlines currently holds about 58.14 million shares of the Brazilian carrier, accounting for 17.95% of the total number of Azul’s preferred stock, 17.28% of the company’s economic benefits and 4.64% of the total share capital.
According to Azul’s closing price of US$17.31 dollar per share on that day, Hainan Airlines could cash out approximately US$1 billion in the deal, if Azul’s stock price remains stable.
Azul is currently the largest low-cost airline in Brazil and is based in Campinas, Brazil. The carrier owns Brazil’s largest airline network, serving more than 100 destinations and 792 daily flights.