Business Activities News
- Eastern Air board approves stake sale
Date: 5-Jun-2007 Sources: (Shenzhen Daily)
THE board of China Eastern Airlines Corp. has approved a plan to issue new shares to allow Temasek Holdings Pte. Ltd., Singapore's state-owned investment company, and its affiliate Singapore Airlines Ltd. to buy a 24 percent stake in the company, the Caijing magazine reported on its Web site Sunday.
Under the plan, Hong Kong and Shanghai-listed China Eastern Airlines would issue a total of around 2.985 billion new H shares to its parent, China Eastern Group, Singapore Airlines and Temasek at HK$3.8 a share, the report cited an unnamed source as saying.
Singapore Airlines would pay China Eastern Airlines HK$4.7 billion (US$601.79 million) for 1.24 billion H shares, or a 15.8 percent stake in the company, and Temasek would pay about HK$640 million for a 8.2 percent stake, said the report.
China Eastern Group has also approved the plan and has agreed to pay HK$4.18 billion for 1.1 billion of the listed company's new H shares, according to the report.
H shares are Hong Kong-listed shares issued by a company registered and based on the mainland.
China Eastern Group would remain the biggest shareholder of China Eastern Airlines, with a 51 percent stake, the report added. The plan still needs approval from regulators, the report said.
China Eastern declined to comment on the report yesterday.
The company's H shares and American depositary shares on the New York Stock Exchange have been suspended from trading since Wednesday, pending the release of a price-sensitive announcement. The company's A shares have been suspended from trading since May 22.
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