Cargolux shareholders have approved issuing additional shares in the company to generate $175 million in capital enhancements.
In addition, the state of Luxembourg, which had held 35 percent of the company since Qatar Airlines sold its stake in January 2013, has closed a share sale to Henan Civil Aviation and Investment Co. for an undisclosed amount.
“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,” Dirk Reich, the carrier’s president and chief executive officer, said in a statement.
The carrier is scheduled to take delivery of five Boeing 747-8 freighters through the end of 2017.
With the share transfer, HNCA now owns the second most Cargolux shares, with Luxair keeping its 35.10-percent stake. Banque et Caisse d’Epargne de l’Etat owns 10.91 percent; Société Nationale de Crédit et d’Investissement owns 10.67 percent; and the Grand-Duchy of Luxembourg owns 8.32 percent.
Cargolux seeks $175M capital influx
