Airport Authority Hong Kong (AAHK) recently signed the definitive transaction agreement with Zhuhai Transportation Holdings Group and other parties to acquire a stake in Zhuhai Airport. Under the agreement, AAHK will invest approximately CNY 4.3 billion to acquire a 35% stake in Zhuhai Airport. Fangda Partners acted as legal counsel to AAHK and provided comprehensive legal services throughout the transaction.

In furtherance to the collaboration between Hong Kong International Airport and Zhuhai Airport since 2006, this transaction represents a significant deepening of the cooperation between the two airports. It will enhance the development of a world-class airport cluster in the Greater Bay Area and the region’s aviation industry. The transaction also exemplifies the integration of Guangdong Province and Hong Kong SAR under the “One Country, Two Systems” framework. Additionally, as part of this deal, Hong Kong-Zhuhai Airport Management Company Limited, a subsidiary of AAHK, will extend its management rights to operate and manage Zhuhai Airport until 2046.

This transaction marks a significant milestone as one of the most notable foreign investments in mainland China’s civil airports over the past decade since the opening of the civil aviation sector to foreign capital. It encompasses various complex elements including state-owned property transactions, asset restructuring, foreign investment, and civil aviation regulation, setting a valuable precedent for similar transactions in the future. Fangda’s extensive legal experience in foreign investment, cross-border M&A, infrastructure, and civil aviation, along with efficient and seamless collaboration across practice teams, ensured the successful execution of the transaction.

The Fangda team was led by projects partner Joe Zhou, with key members including counsel Helen Huang and associates Neal Yang and Emma Zhao.  Significant legal support was also provided by M&A partner Susie Shi and associate Leon Lv; Real Estate partner Wendy Wang and associates Gray Hu, Erika Wang, and Charlene Huang; and Antitrust partner Wang Jin, counsel Joy Wong and associate Jeanette Zhang.