HONG KONG -(Dow Jones)- Air China Ltd. (0753.HK) said Wednesday it will receive CNY1 billion from its controlling shareholder to replenish the funds used to increase its shareholdings in Cathay Pacific Airways Ltd. (0293.HK).
The Chinese carrier said its controlling shareholder China National Aviation Holding Company recently received CNY1 billion from the Ministry of Finance, which will be injected into the airline.
"Neither CNAHC nor the company has taken any action including entering into any agreement with respect to the capital injection. The company will make further announcements to keep the investors informed of the progress of the capital injection pursuant to the relevant regulatory rules," Air China said in the statement.
Air China, now owns 29.99% stake in Cathay Pacific, didn't give details of the stake increase in Cathay Pacific.
No Air China spokesperson was available to expand on the statement, although a company executive confirmed the airline's stake increase had been executed. An Air Cathay spokeswoman said the airline wasn't aware of any change in its shareholding.
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