Aviation News
- China Eastern, Singapore Air deal approved
Date: 28-Aug-2007 Sources: (Shenzhen Daily)
CHINA Eastern Airlines has won Chinese Government approval to sell a stake to Singapore Airlines, two sources familiar with the situation said yesterday.
'The government has in principle given the go-ahead to the China Eastern and Singapore Air deal. The two sides will sign an agreement over the weekend,' one source close to the talks between the two companies told reporters.
A second source confirmed that China Eastern had won approval for the long-expected tie-up, adding the Chinese carrier's shares, which have been suspended from trading since May 23, would resume trading next month.
Neither source provided details of the deal. China Eastern chairman Li Fenghua told reporters in June that China Eastern planned to sell Hong Kong-listed H shares, equivalent to a nearly 25 percent stake, to Singapore Airlines and its majority owner Temasek.
Chinese media reports have valued the deal at roughly US$1 billion.
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