Spring Airlines, a low-cost carrier, has subscribed to China Southern Airline’s A-share non-public offering in a deal worth 846 million yuan (US$122.78 million), becoming the fifth largest shareholder of the company, The Paper reported.

Spring Airlines has subscribed for a total 140.53 million A shares in China Southern Airlines, at a price of 6.02 yuan per share. It accounts for 1.63% of the share capital after the completion of the issuance.

It is the second time that domestic private airlines have invested in one of the three major state-owned aviation enterprises after the Juneyao Group and its private airline Jixiang Airlines bought into China Eastern Airlines in July.

Spring Airlines said it is actively responding to the call of the state to deepen the reform of state-owned enterprises’ mixed ownership, strengthening strategic cooperation between state-owned capital and private capital, and further stimulating capital vitality.