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China Eastern says stake in China Cargo falls
December 20, 2010 / 1:19 AM / 7 years ago

China Eastern says stake in China Cargo falls

HONG KONG, Dec 20 (Reuters) - China Eastern Airlines Corp Ltd (0670.HK)(600115.SS) said its stake in China Cargo Airlines would fall to 51 percent from 70 percent after a 1.55 billion yuan ($232.9 million) capital increase.

China Cargo Airlines, which had total assets of 4.6 billion yuan and net liabilities of 344.6 million yuan as of Dec. 17, would buy the core air cargo transportation business and related assets of Great Wall Airlines and Shanghai Cargo Airlines after increasing its capital base to 2.5 billion yuan.

China Eastern Airlines said in a statement on Wednesday it had agreed to inject 1.05 billion yuan in the capital increase.

COSCO Group, contributing 348.5 million yuan to the capital increase, would see its stake in China Cargo Airlines fall to 17 percent from 30 percent.

Concord Pacific and Singapore Cargo Airlines, contributing 328 million yuan each, would each own 16 percent of the recapitalized cargo group. ($1=6.654 Yuan) (Reporting by Daisy Ku; Editing by Chris Lewis)

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