Hainan Airlines to Buy Hotel, Office Tower Assets in Beijing

By Lee Spears

Dec. 14 (Bloomberg) -- Hainan Airlines Co., the Chinese airline backed by U.S. billionaire George Soros, will pay 2.35 billion yuan ($343 million) to buy a hotel stake and an office tower in Beijing.

Hainan Airlines plans to pay 619 million yuan to buy 45 percent of Beijing Yanjing Hotel Co. from its affiliate Hainan Hotels and Resorts, it said in a statement to the Shenzhen stock exchange yesterday.

The airline will also pay 1.73 billion yuan to buy 65 percent of Beijing Kehang Investment Ltd. from Yangzijiang Real Estate Group and another 30 percent of Beijing Kehang from Hainan Hotels and Resorts, the statement said.

The transactions will be settled in cash and are pending the approval of Hainan Airlines shareholders, the statement said.

To contact the reporter on this story: Lee Spears in Beijing at lspears2@bloomberg.net.