Nov. 16, 2009 (China Knowledge) - Xian Aircraft International Corp<000768>, a Chinese supplier of parts to Boeing and Airbus, today revealed that it will issue shares through private placement as part of its restructuring plan, sources reported.

Although the financial details of the private placement have not been disclosed, four Chinese enterprises in the aviation industry, namely AVIC Shaanxi Aircraft Industry (Group) Corp Ltd, Landing Gear Advanced Manufacturing Corp Ltd, Xi'an Aviation Brake Technology Co Ltd and Xian Aircraft Industry (Group) Co Ltd will subscribe the new shares to be issued by state-owned XAIC.

Shares of XAIC will be suspended from trading today, and trading will resume no later than Dec. 2.

Reportedly, Aviation Industry Corp of China, the parent firm of XAIC, will inject core assets into XAIC in order to consolidate the latter's business. It is estimated that the restructuring will be completed in the first quarter of the next year. AVIC hopes to list 80% of its business and assets through the listed subsidiaries in 2010.

XAIC raised funds through a private placement earlier this year to acquire assets relevant to civil aircraft production and research and development from its parent.

The placement plan is still subject to approval from the China Securities Regulatory Commission.