April 23 - At an extraordinary general meeting of Cargolux Airlines International's shareholders, it was resolved to increase the share capital of the airline by USD175 million in cash, in exchange of newly issued common shares.
"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," said Dirk Reich, president and ceo of Cargolux.
Cargolux also announced the closing of the 35 percent share sale transaction between the Luxembourg State and Henan Civili Aviation and Investment Co (HNCA).
This leads to the following share ownership structure at Cargolux, with Luxair holding a 35.1 percent share; HNCA a 35 percent share; Banque et Caisse d'Epargne de l'Etat (BCEE) a 10.91 percent share; Société Nationale de Crédit et d'Investissement (SNCI) a 10.67 percent share; and The Grand-Duchy of Luxembourg with a 8.32 percent stake in the company.
Cargolux is scheduled to take delivery of another five Boeing 747-8 freighters by the end of 2017, which will be used to expand the airline's global network and improve its position in the global air freight market.