China Eastern stake sale to SIA on the anvil
17 Nov 2007
Singapore: A long anticipated deal between China Eastern Airlines and Singapore Airlines and Temasek Holdings, regarding sale of a 24 per cent stake in the Chinese airline, may likely be announced today.
Reports in the media indicate that there are likely to be no changes to the terms earlier agreed to in September, either in terms of the stake size, or its price.
In September, Singapore Airlines had agreed to buy a 15.7 per cent stake in the Chinese carrier, while Singapore Airlines'' parent, Temasek Holdings, agreed to simultaneously buy another 8.3 per cent of China Eastern. The combined offer of $923 million, has already been approved by both the Chinese Government and China Eastern''s board.
China Eastern suspended trading in its ''A'' shares on Monday, saying that trading would resume once agreement was arrived at.
The deal is still subject to approval by shareholders in a meeting in December.
