Chinese aviation group HNA will buy as much as 20 percent of Portuguese national airline TAP via directly- and indirectly-held shareholdings, news agency AFP reported.

One of the Portuguese airline’s private shareholders, businessman Humberto Pedrosa, told reporters on Saturday that the Chinese conglomerate – owner of Chinese carrier Hainan Airlines – would buy an initial 7 percent stake at Atlantic Gateway, a private consortium that currently owns 50 percent of TAP.

He added the Chinese group’s interest in TAP would involve directly and indirectly held shareholdings, that ultimately could amount to as much as 20 percent, of the carrier.

Mr Pedrosa’s remarks followed a memorandum of understanding (MOU) signed last week between TAP’s private investors and the Portuguese Government.

While a Chinese firm increases its interest in TAP, separately under the MOU with the private investors the Portuguese government of Prime Minister António Costa is planning to increase its stake in the carrier to 50 percent, from the 39 percent it currently holds.

AFP said HNA’s indirect interest in TAP comes about because HNA owns a 23.7-percent stake in Brazilian airline Azul. The latter was founded by businessman David Neelman, described in the report as an associate of Mr Pedrosa. According to AFP, the two last year became TAP’s largest shareholders via Atlantic Gateway.