China Eastern Airlines’ share price doubled yesterday after a more than three-month trading suspension, following Sunday’s agreement under which Singapore Airlines (SIA) and Singapore Government investment arm Temasek Holdings will be acquiring 24%.

The Shanghai-based carrier’s shares had been suspended from trading since May 22, when China Eastern began seeking approval for the buy-in by SIA and Temasek, SIA’s biggest single shareholder.

Under the agreement announced yesterday SIA and Temasek will be acquiring 24% of China Eastern for HK$7.15 billion ($916 million). China Eastern’s share price in Hong Kong more than doubled as trading resumed today to HK$7.50, before settling somewhat lower but still well above SIA’s and Temasek’s buy-in price.

SIA and Temasek agreed to pay HK$3.80 for each China Eastern share that they will be acquiring, which represents a premium of only 1.9% over the closing price of HK$3.73 before trading was suspended in May.

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Source: Flight Daily News