Citigroup may buy into Chinese airline |
Reuters, Hong Kong
China's Spring Airlines is in talks with Citigroup Inc and others to sell stakes as the privately owned carrier looks to outside capital to fund expansion, two sources familiar with the matter said on Thursday.
The 17-month-old budget carrier has got initial approval from the government to buy 10 single-aisle A320 aircraft and hopes to raise roughly 3 billion yuan ($384 million) via share placements and an initial public offering to help foot the bill, a source at the airline told Reuters.
"We have discussed share placement deals with several potential investors including Citigroup," the source said.
"We want to sell no more than 20 percent to one or several investors. Talks with Citigroup have passed the initial stage."