Hidden Hill Capital Makes Significant Private Equity Investment in China Southern Airlines Logistics
Shanghai, December 23, 2020 - Today, Hidden Hill Capital announced it has made a RMB 745 million (~US$113.7 million) private equity investment in China Southern Airlines Cargo Logistics (Guangzhou) Co., Ltd. ("China Southern Airlines Logistics"), a subsidiary of China Southern Airlines Company Ltd. (“China Southern Airlines”).
China Southern Airlines is a leading aviation company in China and the operator of the company’s freight business, China Southern Airlines Logistics, which provides cargo services to 243 destinations in 44 countries and regions through more than 3,000 flights a day. China Southern Airlines sought out private and foreign investment for its cargo business, China Southern Airlines Logistics, as part of the mixed ownership reform pilot.
Following the investment from Hidden Hill Capital, China Southern Logistics will have a more diversified ownership structure and improved corporate governance as it transforms into a modern, integrated logistics service provider.
Higashi Michihiro, chief strategy officer of GLP China and chairman and managing partner of Hidden Hill Capital, said: “This private equity investment is in line with our strategy of building an efficient logistics ecosystem. We see significant opportunities to create value in the ongoing reformation of China's state-owned enterprises and look forward to strongly supporting China Southern Logistics as they transform into a modern logistics integrated service provider."
He Xiaoqun, Chairman of China Southern Airlines Logistics said: " When we pursue mixed ownership reform, we are seeking valuable insights and vision to improve corporate governance and procedures to enhance our international competitiveness. We choose partners that understand the various elements of the logistics ecosystem and bring us a great wealth of knowledge that we can leverage across our four major business sectors - air cargo, modern warehousing, supply chain management and e-commerce."
Hidden Hill Capital’s thematic approach to investing in technology and business innovations in logistics is backed by long industry experience and deep local networks. As an early mover who saw the potential in building a smart logistics ecosystem ahead of its time, Hidden Hill today manages RMB8.4 billion (US$1.2 billion) in committed and invested capital, focusing on investing in companies that develop logistics technologies, support logistics operations or digitize the supply chain. Since its establishment in 2018, Hidden Hill Capital has actively participated in the mixed-ownership reform of state-owned enterprises in traditional logistics fields such as aviation, shipping and railways.
Following this investment, the market capitalization of China Southern Airlines Logistics will increase from RMB one billion to RMB 1.82 billion and China Southern Airlines Co., Ltd. will maintain a controlling position. Through the capital raised, China Southern Logistics will focus on increasing air cargo capacity, strengthening the construction of ground logistics infrastructure, and building better connectivity between air and ground transportation in the aviation logistics industry system.
About China Southern Airlines Logistics
China Southern Airlines Logistics is the integrated operator of China Southern Airlines Group’s freight business. At present, China Southern Airlines Logistics operates 14 large freighters, has the largest B777 freighter fleet in China, operates 19 freighter international routes, and has 60 freight flights per week. Major European and American gateway hubs such as Amsterdam, Frankfurt, London, Los Angeles and Chicago. Relying on the parent company China Southern Airlines Group's global aircraft belly compartment network, China Southern Airlines Logistics provides cargo services to 243 destinations in 44 countries and regions through more than 3,000 flights a day. In addition, by cooperating with 23 well-known truck companies around the world to provide truck transfer services on more than 1043 routes, an efficient air-ground combined transport network has been established.
GLP is a leading global investment manager and business builder in logistics, real estate, infrastructure, finance and related technologies. Our combined investing and operating expertise allows us to create value for our customers and investors. We operate across Brazil, China, Europe, India, Japan, the U.S. and Vietnam and have US$97 billion in assets under management in real estate and private equity funds. Learn more at glp.com/global
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