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February 13, 2008 |
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CHINA EASTERN: Temasek & SAL to Press Bid for 24% Stake Temasek Holdings and Singapore Airlines plan to work with China Eastern Airlines Corporation Limited to win over the China-based carrier's stockholders, Thomson Financial reports, citing the South China Morning Post. Temasek Managing Director of Investment Ong Beng Teck said the group is firmly committed to the agreement but did not give a timetable on when it plans to seal the deal, Thomson Financial relates. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, nearly 78% of China Eastern shareholders rejected a bid by the partnership to buy a minority stake in China Eastern after rival Air China and its parent, China National Aviation Corp., pledged a higher offer. CNAHC had pledged to pay at least HK$5.00 a share if stockholders were to reject the partnership's proposal to buy a 24% stake in China Eastern for HK$3.80 per share, or HK$7.2 billion (US$923 million) in aggregate. Cathay Pacific Ltd. may play a role in case China Eastern shareholders reject the proposed partnership with the Singapore- based investors. The report noted that although CNAHC didn't mention Cathay Pacific directly, it said that Air China "and its business partners" would cooperate in any strategic partnership with China Eastern. About China Eastern 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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