CHINA / National |
S'pore Air set to buy 25% of China Eastern - Caijing(Reuters)Updated: 2007-05-23 09:54 Singapore Airlines will take a 25 percent stake in China Eastern Airlines Corp. for HK$7.9 billion ($1.01 billion) through a new share offer, Caijing, an influential Chinese financial magazine, reported. China Eastern, one of the country's three biggest carriers, is expected to issue 2.045 billion new Hong Kong-listed H shares to Singapore Airlines at HK$3.88 each, the magazine said in a report on its Web site, citing sources familiar with the situation. China Eastern also plans to issue 1.267 billion H shares at the same price to its state parent, which will hold a 51 percent stake in the Chinese listed company after the share placements, it said. On Tuesday Singapore Airlines, the world's biggest airline by market value, confirmed it was poised to make a major investment, but declined to name its target. China Eastern said in a statement issued to the Shanghai Stock Exchange on Wednesday that its Shanghai-listed shares would continue to be suspended pending an announcement related to a significant transaction. China's Eastern's shares in Hong Kong and Shanghai were suspended on Tuesday amid speculation that it would soon seal a deal with Singapore Airlines. |
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