Luxembourg’s government has sold its 35% stake in freight carrier Cargolux to China’s Henan Civil Aviation and Investment (HNCA) for $120 million.
During a visit to China on 14 January, Luxembourg's minister for sustainable development and infrastructure Francois Bausch signed the deal with the governor of the Henan province, Xie Fuzhan, a Luxembourg government statement reveals.
HNCA will acquire the shareholding for $120 million and invest another $15 million in establishing a second cargo hub at Zhengzhou airport, adding to the one at Cargolux’s main base in Luxembourg. The “dual hub strategy” is part of the agreement that was approved by Cargolux’s board in December.
The airline will operate four flights a week to Zhengzhou during the first stage of the new co-operation.
In addition to its investments, HNCA will also participate in a capital increase for Cargolux, whereby up to $175 million is to be injected into the airline during the spring of this year, says Luxembourg’s government.
HNCA will provide 35% of that additional capital to maintain its share.
Luxembourg had been looking for a new investor since Qatar Airways sold a 35% stake in Cargolux back to the government in late 2012 after holding that shareholding for little more than a year.