China Southern Airlines (SHA:600029, HKG:1055) will acquire an additional 31.47% stake in its subsidiary, Chongqing Airlines, for 4.50 billion yuan, according to a Shanghai bourse filing on Saturday.
The airline company's Shanghai shares slipped 1% and Hong Kong shares fell by less than 2% at the close of Monday's trade.
Chongqing Airlines' registered capital will increase to 5.6 billion yuan from 1.2 billion yuan.
China Southern Airlines' stake in Chongqing Airlines will rise to 91.47% from 60% after the transaction.