Chinese firm eyes minority stake in Africa World Airlines

•   Togbe Afede XIV

• Togbe Afede XIV

Hna-Caissa Travel Group, a listed unit of Chinese conglomerate HNA Group, says it plans to buy minority stake in Africa World Airlines (AWA), a Ghanaian private airline company.

Additionally, the Chinese firm has expressed interest in acquiring stakes in Hong Kong Express Airways.

The tourism and travel catering firm is also in discussions to buy stakes in several other companies, it said in a filing to the Shenzhen stock exchange on Friday, according to a Reuters report.

Transaction prices and stake sizes are to be determined later, the firm  said.

Hna-Caissa Travel, with a market capitalisation of $1.6 billion, scrapped a share private placement proposal in February due to changes in regulations and market conditions.

Its share, trading of which has been on halt since January 19, remains suspended, according to Friday’s filing.

HNA Group is facing liquidity pressure and a potential cash shortfall of at least 15 billion yuan in the first quarter, it told creditors in Haikou in January, according to Reuters.

Africa World Airlines Limited (AWA) has been in operations for five years now. It was formed with the sole vision of making air travel the best option for majority of travelers within the markets in which it operates.

 

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