Travel Service is set to change minority owners, as Chinese state-owned firm Citic Group has signed an agreement with the governemnt of the Czech Republic to buy into the local assets of CEFC China Energy, which owns a 49.9% stake in the airline.
CEFC is facing financial trouble and regulator scuntiny back in China.
Citic to take 49% of CEFC Europe, according to deal signed with Czech president Milos Zeman.
The value of the deal or the source of funding was not disclosed.
CEFC is now conducting fire sales of its assets amid an investigation into its chairman. Additionally, staff have not been paid and creditors are circling.
Recently, the Czech government was seeking information about embattled CEFC China Energy, amid concerns about the private company’s investments in the country, which inlcudes the stake in Travel Service.
CEFC chose the Czech Republic as its European hub and bought stakes in several Czech companies, including Travel Service.