Citic Offshore Helicopter to divest jet division

Citic Offshore Helicopter Co Ltd said it plans to divest its 93.97 percent stake in Citic General Aviation Co Ltd for a minimum value of 84.57 million yuan ($13.58 million).

Citic General Aviation was founded in November 2003 with a registered capital of 82.93 million yuan.

The remaining 6.03 percent stake is owned by Hong Kong's Samwell Aviation Ltd.

The general aviation company has a fleet of 18 helicopters and three business jets.

Citic General Aviation wasn't able to perform in a large scale due to the limited number of jets it owns and has posted low revenue in the last few years, Citic Offshore Helicopter said in a filing with the Shenzhen Stock Exchange on Jan 31.

The deal will help to restructure Citic General Aviation's business and optimize resources. By focusing on the helicopter business, the company can enhance its competitiveness in the general aviation market, it said.

Citic General Aviation generated 165 million yuan in operating revenue in 2011, with a 4 million yuan profit. In the first quarter of 2012, the company posted revenue of 42.51 million yuan with a net profit of 3.31 million yuan. However, all the profits were made by the helicopter business, while the business jet sector posted losses.