All data are based on the daily closing price as of July 18, 2024

EVA Airways to Acquire Key Subsidiaries in $3 Billion Deal

Purchase Includes Stakes in Air Service, Inflight Kitchen, and Freight Warehousing Units
Taiwan
e 2618.TW Mid and Small Cap 2000
Share this on

EVA Airways has announced plans to purchase significant equity interests in EVA Air Service, EVA Air Kitchen, and EVA Air Freight Warehousing from its related party, EIC, for a total transaction value not exceeding NT$3 billion. The board made the decision during a meeting on June 26, as revealed in a major news press conference.

Market speculation suggests that Evergreen International’s asset divestiture is aimed at facilitating the separation of the Zhang brothers, signaling a strategic shift away from its role as the holding company of Evergreen Group. The assets involved are integral to EVA Air’s operations, with the airline already holding substantial stakes in these subsidiaries.

Currently, EVA Air owns 56.33% of EVA Air Service, 49.8% of EVA Air Kitchen, and 60.625% of EVA Air Warehousing. Deputy General Manager Chen Yaoming highlighted that increasing shareholding in these steadily operating companies will bolster EVA Air’s operational strategy, enhance competitive advantages, and drive synergies across its aviation value chain. This move is part of a broader strategy to deepen integration and improve the performance of EVA Air’s investment portfolio amid a recovering aviation sector.

The acquired companies are pivotal to EVA Air’s operations: EVA Air Service provides ground handling services to over 20 airlines, EVA Air Kitchen supplies in-flight meals to 27 international airlines, and EVA Air Freight Warehousing manages extensive air cargo operations. The deal underscores EVA Air’s commitment to strengthening its operational base and expanding its market presence.

 

 

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top