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China Eastern gets confirmation to raise fund

In line with the support measures announced by the Civil Aviation Administration of China, China Eastern Airlines has announced that its parent company China Eastern Air Holding Company has received approval from the State-owned Assets Supervision and Administration Commission of the State Council for its application for a state-owned capital operating budget.


CEA plans a non-public offering of 652.18 million A shares at an issue price of 3.6 yuan per share to its controlling shareholder China Eastern Air Holding, together with the same number of H shares at 1 yuan per share. By this means, the company expects to raise total of about 3 billion yuan to be used to supplement current capital.


Of the ten measures announce by the CAAC to mitigate the impact of the global slowdown in business, one important point is that the Chinese government will inject capital into some domestic airlines.


(China Hospitality News December 18, 2008)