Aviation News
- Eastern Air to sell unit, focus on core business
Date: 20-Nov-2007 Sources: (Shenzhen Daily)
CHINA Eastern Airlines said yesterday it had agreed to sell its investment arm to its State parent for 462 million yuan (US$62.2 million) to focus on its core business.
China Eastern Airlines, in which Singapore Airlines Ltd. and Temasek Holdings are buying a 24-percent stake for HK$7.16 billion (US$921 million), will sell its 98.79 percent stake in the investment unit, it said in a statement. The sale should boost China Eastern Airlines' cash flow and reduce debts because the unit's main investment projects are not expected to pay dividend over the next three to five years, the statement said. The unit invests in projects such as airports.
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