ZURICH, March 22, 2012 /PRNewswire-Asia/ -- gategroup and China Aviation Investment Co., Ltd. ("CAIC") have signed a letter of intent to cooperate in China and in international markets to provide catering and provisioning services to airlines. The letter of intent outlines a process whereby gategroup and CAIC would form a joint venture Company to hold the investments.
At gategroup's invitation, CAIC has agreed to invest in Shanghai Pudong International Airport Gate Gourmet Air Catering Co., Ltd. ("GGPVG") as a first step in the proposed partnership. gategroup currently is a majority shareholder in the business, with the Shanghai Airport Authority owning the remainder.
An investment by CAIC would allow for cash repatriation by gategroup as well as form the basis of a cooperative partnership. The parties aim to facilitate the existing business of Gate Gourmet in Shanghai as well as new business expansion and the preparation for the Shanghai operation to provide services to Chinese airlines, including its flagship carrier Air China.
CAIC and gategroup have agreed to cooperate on other projects in China through the JV company, which will be used as a vehicle for further cooperation in the People's Republic of China as agreed by both parties. As part of the partnership, CAIC agreed to partner with gategroup to invest in a catering company at the second international airport in Beijing.
The investment by CAIC into GGPVG is subject to regulatory approval by government authorities in China.
About gategroup
gategroup is the leading independent global provider of onboard products, services and solutions to companies that serve people on the move. Swiss-based gategroup's world-class capabilities are focused in catering and hospitality, provisioning and logistics and onboard solutions.
Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange under the symbol GATE. Please visit www.gategroup.com.
About China Aviation Investment Co. Ltd (CAIC):
China Aviation Investment Co. Ltd was established in 2009 and is based in Beijing. The company is a joint venture between China National Aviation Holding Co and China National Aviation ( Group ) Limited. CAIC was formed as part of a long -term industrial development strategy by the Chinese government to develop aviation-related companies in the domestic market as well as in international markets.
