China Eastern in $2.3 billion private share sale.
FIRDAUS HASHIM | July 11, 2018
China Eastern Airlines will conduct private share placements that will see Juneyao Airlines and two other entities become shareholders. In a Hong Kong stock exchange disclosure, the SkyTeam alliance member says it will issue up to 1.61 billion worth of A-shares, valued at CNY11.8 billion ($1.78 billion), and up to 517.7 million of H-shares valued at HK$3.56 billion ($533.9 million). For the A-shares, Juneyao Airlines will subscribe CNY2.5 billion worth of shares, while parent company Juneyao Group will subscribe CNY7.3 billion worth of shares. A state-owned entity, China Structural Reform Fund, will subscribe CNY2 billion worth of shares. The CNY11.8 billion raised from this particular issuance will be used to finance the delivery of 18 aircraft (CNY9.02 billion), 20 engines on standby use (CNY1.78 billion), and 15 aircraft simulators (CNY996 million).