THE HNA Group of China and Hong Kong's Bravia Capital have entered into an agreement to acquire a large minority stake in Istanbul-based ACT Airlines, which will soon change its name to MyCargo.

The transaction is expected to enable HNA to develop a cargo platform to tap into growing Eurasian cargo volumes. The terms of the deal were not revealed, said a Marketwire report.

Founded in 2004, ACT has a fleet of six Airbus A300 freighters and has been operating long-term contracts for DHL, Lufthansa, UK Ministry of Defence and Chapman Freeborn among others. The company will induct Boeing 747-400 and B767 freighters into its fleet and fly a combined wide-body and medium wide-body strategy in both the ACMI and network segments.

ACT Airlines will join a group of companies under the Grand China Logistics Group (GCL), the logistics arm of HNA. Created in 2007 as an air-land-sea and conglomerate logistics company in China, GCL has total assets of over US$7 billion, and operates a cargo airline with 14 aircraft, several shipping lines operating a total of 100 ships in bulk, tanker and container segments through eight shipping companies and two shipyards.

"We believe that ACT Airlines is a perfect fit for Grand China Logistics' expansion plans outside of China and that ACT will benefit tremendously from becoming a part of the HNA family," said ACT Airlines CEO Daglar Cizmeci.

"As a result of this partnership, ACT will expand its fleet in the very near future and will also enhance the scope of its operating platform to include bases in Europe and Africa. I am also pleased to announce that following the acquisition, I am joining the Bravia team as head of originations, where Bravia's Istanbul office will benefit from my insights and experience," said Mr Cizmeci.