Shenzhen Airport Seeks Hong Kong Airport Authority As Investor

Thursday February 12, 6:19 PM 

Shenzhen Airport Seeks HK Airport Authority As
Investor
Yahoo News

SHANGHAI (Dow Jones)--China's Shenzhen Airport Co.
(000089.SZ) said Thursday it wants the Airport
Authority of Hong Kong to become a strategic investor,
but that talks on the matter are only at a preliminary
stage. 

"We plan to introduce Airport Authority of Hong Kong
as our strategic investor to further cut state-owned
shares and improve corporate governance," Shenzhen
Airport said in an announcement published in the
mainland China Securities Times. 

Shenzhen Airport and the Airport Authority are yet to
sign any agreements, the announcement said. 

The government-owned Airport Authority - which itself
plans to sell shares before the end of 2004 - didn't
respond directly to the Shenzhen Airport statement. 

"AAHK believes a closer cooperation and coordination
of airports in the Pearl River Delta will bring
benefits to customers, all the airports involved, as
well as for the development of the aviation industry
in South China," said spokesman Louis Liu. 

"Multilateral and bilateral cooperation and
coordination between PRD airports have taken the form
of the A5 Forum. As part of the A5 Forum initiative,
AAHK has been in discussion on ways of possible
cooperation with the Shenzhen Airport," he said. The
A5 forum groups together the five major airports of
the Pearl River Delta. 

The two airports compete for some passengers,
particularly on China flights. But the Shenzhen
government has been among the more active in China in
restructuring the state-owned companies in its
portfolio. 

The Shenzhen Airport statement said the government
plans to unload some of its interest in the airport as
part of efforts to restructure operations at about 30
companies by transferring stock to strategic
investors. 

Most of the Shenzhen restructuring will be completed
this year, although the municipal government has set a
2005 deadline for the process, said Zhang Siping, a
vice mayor of the special economic zone and the
official in charge of plans to restructure the
state-owned firms. 

Recent reports in major state-owned financial dailies
said the restructuring plans include reducing the
government's stake to below 30% in several companies,
including listed Shenzhen Accord Pharmaceutical Co.
(000028.SZ) and Shenzhen Textile Holdings Co.
(000045.SZ). 

Shenzhen Airport said earlier this month it has signed
a broad agreement to form a 50-50 joint venture with
the cargo services arm of Germany's Lufthansa AG
(LHA.XE). Terms weren't set. 


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