Through this transaction, Gategroup has reduced its participating interest from 80% to 29%, with CAIC holding 51% and Shanghai Airport Group 20%.
The airline catering facility will be co-branded. Given it now has a minority shareholding, Gategroup will no longer consolidate the entity.
“The closer partnership with CAIC is one important step forward in our business development strategy in China,” said Gategroup CEO Andrew Gibson. “We expect that current revenues of around CHF 21m at the existing operation at Pudong Airport will continue to grow substantially over the next three years. In addition, the joint venture will also integrate the activities of the Shanghai Airport International Catering Co Ltd, establishing a presence in both major airports serving Shanghai (Pudong and Hongqiao).”
Source: Gategroup
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