September 1 -- Air China (601111,0753.HK) will obtain a cash injection of one billion yuan from its controlling shareholder, China National Aviation Holding Company, with the funds to be used to replenish the capital already used to increase its stake in Cathay Pacific Airways (0293.HK), reports yicai.com, citing a company filing.

Air China had spent HK$6.34 billion in August 2009 to raise its shareholding in Cathay Pacific to 29.99 percent, becoming the latter’s second-largest shareholder.

Following the stake increase, Air China obtained the right to appoint two non-executive directors to the board of Cathay Pacific.

Source:capitalvue