EUROPEAN all-cargo carrier Cargolux is to increase the share capital of the airline by US$175m in cash, in exchange of newly issued common shares.
The news follows an “extraordinary general meeting of the company’s shareholders”, says a company statement.
Dirk Reich, the new president and chief executive, comments: “The share capital increase is another important milestone in securing our growth plans and the expansion of the Cargolux fleet.
“It significantly improves our resilience against any future industry downturns and strengthens our balance sheet.”
The statement also reveals Chinese investor Henan Civil Aviation and Investment’s (HNCA) 35 per cent share sale transaction has been closed.
The remainder of the airline’s shares are owned by Luxair (35.10 per cent), Banque et Caisse d’Epargne de l’Etat (10.91 per cent), Société Nationale de Crédit et d’Investissement (10.67 per cent) and Luxembourg Government, with 8.32 per cent.
Cargolux will take delivery of another five B747-8 freighters until the end of 2017, which “will be used to further expand the airline’s global network and improve its position in the global airfreight market”, the statement continues.
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