China Eastern plans $2.2 billion share sale to fund aircraft
The carrier is planning private placements in Shanghai and Hong Kong, and Juneyao Airlines, among investors, is to subscribe to the sale.
China Eastern Airlines, one of the nation’s top three carriers, is raising as much as USD 2.2 billion from a sale of shares to help fund purchases of aircraft and engines as the company expands its fleet to meet surging demand for air travel.
The state-owned airline proposes to sell as many as 1.62 billion shares on the mainland to investors including the Juneyao Group, collecting 11.8 billion yuan (USD 1.8 billion) and a further placement of up to HK$3.55 billion (USD 452 million) of stock in Hong Kong, according to a filing to the Shanghai stock exchange Tuesday.
Proceeds from the sale will be used to finance the purchase of 18 planes worth USD 1.5 billion, including narrow-body jet such as Boeing’s 737s and Airbus’ A320s and wide-body jets such as the 787 Dreamliners and A350s, according to the filing.
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