China Eastern Raises USD$1.3 Bln In Share Placement

July 5, 2016

China Eastern Airlines has raised CNY8.55 billion yuan (USD$1.28 billion) in a private sale of shares to a group of investors including China's biggest online travel agency Ctrip, which becomes the airline's fifth-biggest shareholder.

China's second-largest carrier by passenger numbers will use CNY6.83 billion of the proceeds to purchase new aircraft, and CNY1.71 billion to repay bank loans, it said in a Shanghai Stock Exchange submission.

The private placement came as China Eastern sought to diversify its shareholder pool.

In its first investment in the carrier, Ctrip bought CNY3.0 billion yuan in shares in the placement, giving it a 3.22 percent stake.

China National Aviation Fuel bought an additional CNY3.0 billion yuan of shares, raising its holding in the airline to 4.05 percent.

(Reuters)