Carrier set to sell additional shares
By Winny Wang |
September 8, 2009, Tuesday
|
Print Edition
Print Edition
CHINA Eastern Airlines yesterday gained shareholders' approval to raise 7 billion yuan (US$1.02 billion) by selling additional shares to replenish working capital.
It will sell 1.35 billion yuan-denominated A shares to 10 institutional investors at 4.75 yuan each and 490 million Hong Kong shares to its wholly owned unit, China Eastern International, at HK$1.40 (18 US cents) apiece.
The money will help reduce the Shanghai-based carrier's debt-to-asset ratio to 94.7 percent and enhance its ability to control risks, it said in a statement yesterday.
China Eastern, the country's third-largest carrier by fleet size, suffered a loss of 14 billion yuan last year but returned to the black in the first half of this year thanks to fuel hedging gains.
"Our target is to significantly reduce losses this year," said Liu Shaoyong, chairman of the carrier, at yesterday's shareholders' meeting.
The airline will hold another meeting next month to seek shareholder approval on its takeover of its smaller rival Shanghai Airlines via a share swap.
The merger will expand China Eastern's market share in Shanghai to more than 50 percent, which will eclipse Air China's 12 percent.
"We have negotiated with government departments and aimed to complete all approval procedures by the end of this year," said Liu.
He added that China Eastern will make a final decision on joining one of the three airline alliances around the end of this year.
China Eastern said earlier that it will reduce plane deliveries this year to 13 from 29 and may also consider scrapping its previous order for nine Boeing 787 Dreamliner aircraft.
It will sell 1.35 billion yuan-denominated A shares to 10 institutional investors at 4.75 yuan each and 490 million Hong Kong shares to its wholly owned unit, China Eastern International, at HK$1.40 (18 US cents) apiece.
The money will help reduce the Shanghai-based carrier's debt-to-asset ratio to 94.7 percent and enhance its ability to control risks, it said in a statement yesterday.
China Eastern, the country's third-largest carrier by fleet size, suffered a loss of 14 billion yuan last year but returned to the black in the first half of this year thanks to fuel hedging gains.
"Our target is to significantly reduce losses this year," said Liu Shaoyong, chairman of the carrier, at yesterday's shareholders' meeting.
The airline will hold another meeting next month to seek shareholder approval on its takeover of its smaller rival Shanghai Airlines via a share swap.
The merger will expand China Eastern's market share in Shanghai to more than 50 percent, which will eclipse Air China's 12 percent.
"We have negotiated with government departments and aimed to complete all approval procedures by the end of this year," said Liu.
He added that China Eastern will make a final decision on joining one of the three airline alliances around the end of this year.
China Eastern said earlier that it will reduce plane deliveries this year to 13 from 29 and may also consider scrapping its previous order for nine Boeing 787 Dreamliner aircraft.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
