HONG KONG Dec 20 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.
(Reporting by Daisy Ku; Editing by Chris Lewis)