Domestic

China Eastern says stake in China Cargo falls

(Agencies)
Updated: 2010-12-20 10:14

HONG KONG - China Eastern Airlines Corp Ltd's stake in China Cargo Airlines will fall to 51 percent from 70 percent after a 1.6 billion yuan ($232.9 million) capital increase, according to Reuters' report on Sunday.

China Cargo Airlines, which had total assets of 4.6 billion yuan and net liabilities of 344.6 million yuan as of Dec 17, will 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, the report said.

China Eastern Airlines said in a statement on Nov 15 it had agreed to inject 1.05 billion yuan in the capital increase.

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Meanwhile, China Ocean Shipping Group, contributing 348.5 million yuan to the capital increase, will 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, will each own 16 percent of the recapitalized cargo group, the report said.