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November 26, 2007 |
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CHINA EASTERN AIR: Sells Equity in Shanghai Eastern for CNY460MM China Eastern Airlines Co., Ltd. (SEHK: 0670 and SHSE: 600115), recently sold for CNY460 million the equity it holds in Shanghai Eastern Airlines Investment Co., Ltd., to its parent, China Eastern Air Holding Co., Trading Markets reports, citing Sinocast. With a total registered capital of CNY412.5 million, Eastern Airlines Investment was co-founded between Eastern Airlines and East China Cares System Co., Ltd., a local company specialized in civil aviation data network, in Shanghai on May 29, 2002, the report relates. According to Trading Markets, the two shareholding companies made up 98.79% and 1.21% of the new incorporation for CNY407.52 million and CNY 4.98 million, respectively. Meanwhile, East China Cares System also sold its stake valued at CNY5.658 million in Eastern Airlines Investment. XFN-Asia notes that, according to China Eastern, the asset sale will boost the group's cashflow, lower its debt to asset ratio and enhance business growth. The XFN report further says that China Eastern intends to use the proceeds from the stake sale for purchasing aircraft to increase flight capacity and bolster the group's competitiveness. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com -- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. |
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