Aviation News
- Eastern Air seeks approval for SIA deal
Date: 28-May-2007 Sources: (Shenzhen Daily)
CHINA Eastern Airlines is seeking approval from the government for the sale of a stake to Singapore Airlines (SIA), an official with Shanghai-based Eastern Airlines said Friday.
Upon approval, Eastern Airlines will disclose the details of the agreement, which it said Tuesday has been reached, allowing SIA to buy a stake in the Shanghai and Hong Kong-listed carrier.
'We are still communicating with the government with regards to our agreement with Singapore Airlines,'said an unnamed official with the investor relations department of Eastern Airlines.
'We cannot disclose details until we get the approvals,'he said, adding an announcement could come as early as this week.
Eastern Airlines spokesman Luo Zhuping would not confirm whether the company was seeking official approval.
'We are communicating with various parties,'Luo said.
He added the company has not yet decided when an announcement will be made.
Eastern Airlines said Tuesday the negotiations have been concluded, but declined to give further details. On the same day, SIA said it was at an advanced stage of discussions on a potential strategic investment.
Beijing-based Caijing magazine last week said Eastern Airlines would sell a 25-percent stake for around US$1 billion, which would make SIA the second-largest shareholder in Eastern Airlines.
The South China Morning Post reported Friday that SIA would pay no more than US$770 million for less than a 20 percent stake.
The report alsosaid Temasek Holdings, Singapore's state-owned investment company which owns 56 percent of SIA, will join SIA in the deal.
Sponsor Results:
