Singapore-China Eastern deal approved
12 November 2007
The State Council and China Eastern's board of directors have approved Singapore Airlines and Temasek Holdings' bid for a 24% stake in China Eastern Airlines, the Wall Street Journal reported. The deal has been under discussion since May, when Singapore Airlines announced it was interested in taking up to the maximum 25% stake currently allowed by Chinese regulators. Singapore Airlines agreed in september to buy 1.24 billion shares, a 15.7% stake in China eastern for US$603.8 million, while Temasek, Singapore Airlines' parent company, agreed to buy an 8.3% stake. The deal allows Singapore Airlines to increase its stake in China Eastern if Chinese aviation regulations loosen in the future. The deal is pending final approval by China Eastern's shareholders at an upcoming meeting in December or January.