SINGAPORE, Jan. 8 (Xinhua) -- Singapore Airlines
(SIA) quickly expressed its disappointment Tuesday over the shareholders'
rejection of its investment in China Eastern Airlines (CEA).
The Singapore flag carrier said in a statement that
"Singapore Airlines is disappointed that the proposed transaction involving an
equity stake in China Eastern Airlines did not receive the required level of
support from independent shareholders at today's EGM (extraordinary general
meeting)."
On Tuesday afternoon in Shanghai, CEA's minority
shareholders voted against selling 24 percent stake for 7.2 billion Hong Kong
dollars (about 923 million U.S. dollars) at 3.8 Hong Kong dollars per share to
SIA and Temasek Holdings, Singapore's government-related investment firm.
The China Eastern-SIA deal has been baffled by
another Chinese airline giant Air China. Its parent company China National
Aviation Holding Company, announced before the shareholders' meeting that it
will make a counter-offer at least 32 percent higher than that of SIA's.
SIA maintained in the statement that its offer
represents a "full and fair value for the equity injection to recapitalize the
airline", and noted that the transaction "has also been approved in accordance
with relevant laws and regulations."
It reiterated, "The proposal is for a long-term
strategic relationship with a willing partner."
And its proposal would have brought international
expertise from SIA's board and management to China Eastern, which, SIA said,
would have helped CEA meet future challenges in a competitive aviation
environment in China.
However, SIA said it respected the shareholders' vote
and will continue to support the building of a relationship with China Eastern.
On its part, Temasek Holdings said it remains open to
future opportunities which make commercial sense, and that fall within Temasek's
overall investment framework.
Shareholders reject China Eastern's SIA deal for low offer price
SHANGHAI, Jan. 8 (Xinhua) -- China Eastern Airlines (CEA) shareholders rejected its planned 24 percent stake sale to Singapore Airlines (SIA) during a vote in Shanghai on Tuesday.
More than 74 percent of the minority H shareholders and 77 percent of the minority A shareholders voted against the tie-up as they deemed the offer price of 3.8 Hong Kong dollars (48 U.S. cents) as too low. Full story
Eastern's SIA deal looks uncertain following Air China counter-bid
BEIJING, Jan. 7 (Xinhua) -- The outcome of a vote to approve China Eastern Airlines' (CEA) sale of a stake to Singapore Airlines (SIA), scheduled on Tuesday, is up in the air after a major shareholder made a counter-bid, effectively voting against the deal.
China National Aviation Corporation (Group), or CNAC, said in a statement late Sunday that it would offer at least 5 Hong Kong dollars (0.64 U.S. dollars) a share for the stake in CEA if shareholders rejected SIA's bid of 3.8 Hong Kong dollars apiece.
Full story
CNAC offers higher price for Eastern
BEIJING, Jan. 7 -- The parent company of the nation's largest airline company, Air China, said yesterday it plans a make a counter offer of HK$5 per share - or a third more - for China Eastern Airlines if shareholders rejected a Singaporean deal.
In a statement last night, China National Aviation Corp (CNAC), which owns 12 percent of
China Eastern's Hong Kong-listed shares, said it would submit a bid within two
weeks if Tuesday's shareholding meetings rejected China Eastern's union with Singapore Airlines
and Singaporean investment agency Temasek.
Full story
