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By Jamie Freed and Anshuman Daga
SINGAPORE (Reuters) - Singapore state investor Temasek Holdings has expressed interest in buying into Chinese conglomerate HNA's Hong Kong-based carriers, Hong Kong Airlines and Hong Kong Express Airways, according to a source familiar with the matter.
However, an investment in the unlisted Hong Kong carriers by Temasek remains subject to a due diligence process that has yet to begin, said the source on condition of anonymity.
The Singaporean investor would likely emerge as only a minority holder in the Hong Kong airlines, which control valuable slots at Hong Kong's capacity-constrained airport, if a deal is completed, the source said.
Temasek and the debt-laden HNA, an aviation-to-financial services conglomerate, last week signed a memorandum of understanding to explore business partnerships in aviation and logistics.
Buying into the Hong Kong airlines would help Temasek get an aviation foothold closer to mainland China, in a market dominated by Cathay Pacific Airways Ltd.
Temasek, HNA and Singapore Airlines declined to comment.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)