Chinese liquor maker Wuliangye invests USD 730 million in Sichuan Airlines

Yibin Wuliangye Group, a Chinese maker of alcoholic drinks, has invested RMB 5 billion (USD 729.7 million) in Sichuan Airlines Group to help it recover from losses in recent years as a result of the pandemic.

The two state-owned firms, both based in China’s southwestern Sichuan province, reached an agreement on the investment last month, a person familiar with the matter told Yicai Global.

The new funds will be used to boost the airline operator’s capital, the person said, adding that other shareholders will also invest more to increase its capital.

Sichuan Airlines Group is the top shareholder in Sichuan Airlines with a 40% stake, followed by China Southern Airlines with 39%, and China Eastern Airlines and Shandong Airlines with 10% each.

Wuliangye and Sichuan Airlines Group joined hands for the first time in 2018 when they set up Sichuan General Aviation Investment Management. The liquor maker has a 35% stake in the joint venture. Wuliangye also became the title sponsor of the new airport in Yibin, Sichuan in 2019.