China Eastern Airlines is raising 860 million yuan ($129.4 million) in a non-public share offering.
The Shanghai-based carrier, which is listed on the Hong Kong and Shanghai stock exchanges, will sell the shares to its parent company, the state-owned China Eastern Air Holding Corp.
Earlier this week China Eastern announced that subsidiary China Cargo Airlines entered into the agreement for the acquisition of the assets of Great Wall Airlines for 386.85 million yuan. The acquisition shall be paid out of China Cargo Airlines’ internal resources, says China Eastern.
As per the agreement a new business licence has been issued to China Cargo Airlines by the competent authority following the transformation of China Cargo Airlines into a foreign-invested enterprise as a result of the capital increase, which has been approved by the Ministry of Commerce.