New Airport in Xiamen
The municipal government of Xiamen has announced that the proposed new airport at
Xiang’an will commence operations in 2020. This is subject to the National Development
and Reform Commission’s approval. Management maintains regular communications with
the local authorities about the new airport and its opening, which will be material to the
operations of the HAECO Group in Xiamen.
In November 2015, conditional agreements were entered into for the restructuring of
shareholdings in HAESL and SAESL. As part of the restructuring (and subject to satisfaction
of the conditions to which the agreements are subject), HAESL will sell its 20% shareholding
in SAESL. This sale is expected to result in a gain to HAESL. The amount of the gain will
depend on (inter alia) when the agreements are completed. For illustrative purposes only, if
(which is not certain) the agreements are completed by the end of April 2016, the gain to
HAESL is expected to be approximately US$229 million. 45% of the gain to HAESL
(equivalent to approximately HK$804 million if the agreements are completed by the end of
April 2016) is expected to be reported as a profit by HAECO. As part of the restructuring,
HAECO agreed to increase its shareholding in HAESL from 45% to 50%. On completion of
the restructuring, HAESL will be owned as to 50% by HAECO and 50% by Rolls-Royce, and
HAESL will no longer be interested in SAESL.
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