Stocks News
- Southern Air share-reform plan approved
Date: 17-Apr-2007 Sources: (Shenzhen Daily)
CHINA Southern Airlines Co.'s board has approved a plan to float the company's massive nontradable stake on the local stock exchange.
Under the plan, the carrier's parent, China Southern Air Holding Co., will issue a combined 500 million warrants to holders of China Southern's yuan-denominated A shares, giving them the right, not the obligation to sell the same number of A shares at 7 yuan (US$0.91) over 12 months of the listing of the warrants.
For every 10 A shares held, the group will grant five such warrants, according to the plan published on the Web site of the Shanghai Stock Exchange.
China Southern's Shanghai-listed A shares last closed up 4.9 percent at 7.43 yuan March 22. They've been suspended from trading for the share reform.
The company said it would convene a shareholders meeting May 17 to vote on the share reform plan and organize online voting from May 15 through May 17.
China Southern is among the few blue-chip mainland-listed companies yet to complete a mandatory government program aimed at turning State-controlled holdings in listed companies into tradable shares. The Guangzhou-based carrier lists shares in Hong Kong and Shanghai.
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