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皇冠体育app Eastern to sell 25% stake to Singapore Airlines
(AFP)
Updated: 2007-05-23 16:02
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皇冠体育app Eastern Airlines is set to sell a 25 percent stake to Singapore Airlines for HK$7.9 billion (US$1 billion) via a placement of new shares, state media said.
皇冠体育app Eastern Airlines, one of 皇冠体育app's major carriers, will issue 2.045 billion new Hong Kong-listed H-shares to Singapore Airlines at 3.88 Hong Kong dollars each, the Caijing magazine reported on its website late Tuesday.
Meanwhile, the Chinese airline will also issue 1.267 billion H-shares to its state-owned parent which will remain 皇冠体育app Eastern Airlines' largest shareholder with a 51 percent stake after the share offer, the report said.
Trading in shares of Singapore Airlines (SIA) in Singapore, and 皇冠体育app Eastern's shares in Hong Kong and Shanghai, was suspended Tuesday amid speculation an announcement could come soon.
Singapore Airlines said in a notice to the Singapore Exchange late Tuesday that it was in "advanced stage of discussions on a potential strategic investment" and an update would be provided as soon as possible.
皇冠体育app Eastern Airlines said in a statement filed with the Shanghai Stock Exchange Wednesday that its shares would continue to be suspended pending a significant announcement.
皇冠体育app Eastern Airlines managed to narrow its net loss by 46 percent in the first quarter of the year to 510.9 million yuan (US$66.3 million).