Hainan Meilan International Airport Company Limited (Meilan Airport) disclosed that its controlling shareholder, Hainan Airport Infrastructure Co., Ltd., has pledged 118.75 million unlisted domestic shares to several mainland Chinese banks as collateral for merger-and-acquisition loan financing arranged for the shareholder itself.
The pledged block equals 25.09% of Meilan Airport’s total issued share capital and represents about 40.24% of the 295.18 million shares (62.38% of total equity) currently held by the controlling shareholder directly and through its wholly owned subsidiary.
Management confirmed that the pledge: • is exclusively linked to the shareholder’s financing activities and not to any debt or guarantee obligations of Meilan Airport; and • does not fall within the disclosure parameters of Listing Rule 13.17.
The board advised shareholders and prospective investors to exercise caution when dealing in the company’s shares.