HAINAN Airlines Holding Co., the nation’s fourth-biggest carrier, plans to raise as much as 7 billion yuan (US$1.1 billion) by selling shares to investors, including an arm of Singapore state fund Temasek Holdings Pte., as part of a restructuring planned by the unit of conglomerate HNA Group Co.

The carrier is selling up to 20 percent of its Shanghai-listed shares to 10 investors. Proceeds from the sale will be used to fund plane purchases, aviation training, maintenance and airport business.

“With the acquisitions, the airline will be able to expand the routes, strengthen development in aviation maintenance, flight training and other services,” the airline said in a filing to the Shanghai Stock Exchange on Saturday.

Hainan Airlines said the acquisition would result in an ownership change in the company, which is now controlled by a provincial regulator. Hainan’s State-owned Assets Supervision and Administration Commission (SASAC) controls the carrier through the SASAC’s stake in Grand China Air Co.

Hainan Airlines said after the transaction, its owner will become Hainan Province Cihang Foundation, which is connected to HNA Group.

The stake sale announcement follows two months after Temasek and indebted HNA Group said they were exploring partnerships in areas including aviation, logistics and airport infrastructure.

Hainan Airlines’ restructuring plans involve consolidation of HNA’s various aviation assets under one umbrella and the carrier has said it is looking to buy stakes worth 10.5 billion yuan in HNA subsidiaries engaged in related businesses.

Hainan Airlines began operations in 1993 and counted George Soros among its early investors. Riding the economic boom in China and the surge in travel demand, the carrier now services about 1,800 domestic and international routes reaching over 220 cities worldwide with a fleet of more than 300 aircraft, according to its website.

(SD-Agencies)