China Eastern Airlines to raise up to $2.2b in share sale

A China Eastern Airlines plane takes off at an airport in Taiyuan, Shanxi province, April 5, 2013. REUTERS/Jon Woo

By Min Zhang, Meg Shen

July 10, 2018

China Eastern Airlines Corp plans to raise up to $2.23 billion in a share sale to expand its fleet and to replenish working capital, the company said in a filing to the Shanghai stock exchange on Tuesday.

China Eastern, the country’s second largest carrier by passenger numbers, will use $1.78 billion proceeds from the share sale to fund the purchase of 18 airplanes, 15 flight simulators and 20 backup engines, it said in the filing.

The remaining $452.4 million will be used to boost its working capital, the filing added.

China Structural Reform Fund Corporation Ltd, approved by the State Council to support state-owned enterprises, will invest $301.6 million in the share sale, according to the filing.

Juneyao Airlines Co Ltd, and its controlling shareholder Juneyao Group, will spend a combined $1.93 billion in China Eastern‘s share sale, a separate filing to the Shanghai stock exchange showed.

The Shanghai-based Juneyao Airlines and the Group are expected to own more than 5 percent stake in China Eastern Airlines if they fulfil the upper limit of the proposed share subscriptions.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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