Grandstar Cargo’s boost

GRANDSTAR Cargo is set to receive an investment of US$30m.
Majority shareholder Sinotrans has also offered to give up the rights of first refusal on a 24 per cent stake in the cargo carrier. The stake will be sold by Asiana Investment and Shinhan Investment to Asiana Investment Securities.
After the completion of the stake transfer, Sinotrans, Korean Air and Asiana Investment Securities will jointly inject US$30 million into Grandstar Cargo to boost its registered capital to $95m. Sinotrans will contribute $15.3m of the total.
The cargo airline is owned by Sinotrans, Korean Air, Asiana Investment and Shinhan Investment with respective shareholdings of 51 per cent, 25 per cent, 13 per cent, and 11 per cent.
Grandstar posted revenue of 77.54m yuan ($12.6m) and a loss of 46.04m yuan ($7.21m) in the first half.
At the end of June this year Grandstar had total assets of 598.7 million yuan ($93.9 million) and liabilities of 494.4 million yuan ($77.5 million).