China Southern offloads 45% stake in logistics unit

China Southern Airlines (CZ, Guangzhou) is set to dispose of a 45% stake in its wholly-owned CSA Logistics subsidiary as the majority-state-owned carrier progresses with its mixed-ownership reforms. According to the investment agreement, CSA Logistics’ registered capital will grow from CNY1 billion (USD152.7 million) to CNY1.82 billion (USD277.6 million). After completing the capital contribution, set for December 31, 2023, the funds will be used by CSA Logistics for general working capital. China Southern will retain a controlling 55% stake in the company. Established in June 2018, CSA Logistics’s principal business focusses on cargo shipments using aerial and overland means, forwarding, customs clearance, and general cargo handling activities. As of October 31, 2020, it registered a net profit after tax of CNY3.26 billion yuan (USD498 million) on revenue of CNY12.285 billion (USD1.875 billion). China Eastern Airlines (MU, Shanghai Hongqiao) and Air China (CA, Beijing Capital) have initiated similar ownership reforms of their respective cargo and logistics subsidiaries.