July 10, 2018

China Eastern plans share sale

China Eastern Airlines plans to raise up to $2.23 billion in a share sale, with proceeds earmarked for fleet expansion and working capital, according to a 10 July filing with the Shanghai stock exchange.

China Easter, the country’s second-largest carrier by passenger numbers, will use $1.78 billion of the proceeds to fund the purchase of 18 aircraft, 15 flight simulators and 20 spare engines, according to the filing.

The remaining $452.4 million would be used to boost working capital, the filing added.

China Structural Reform Fund Corporation, approved by the State Council to support state-owned enterprises, will invest $301.6 million in the share sale, according to the filing.

Juneyao Airlines Co and controlling shareholder Juneyao Group will spend a combined $1.93 billion in China Eastern’s share sale, according to a separate filing.

Shanghai-based Juneyao Airlines and Juneyao Group are expected to own more than a 5% stake in the carrier if they subscribe to the upper limit of proposed share subscriptions.