Singapore Airlines Cargo has signed an agreement to acquire 16% of the equity interest in China Cargo Airlines Co Ltd, subject to regulatory and other approvals.

China Cargo Airlines is a Shanghai-based company incorporated in China, with an initial registered capital of RMB950 million ($188 million).

It was 70% owned by China Eastern Airlines and 30% owned by China Ocean Shipping (Group) Company (Cosco).

Following an investment agreement signed in Shanghai today, the parties will seek approvals for China Cargo Airlines to be re-organised into a limited liability Chinese-foreign equity joint venture company. Its registered capital will increase to RMB3 billion.

SIA Cargo’s investment in the re-organised company will amount to RMB328 million.