China Eastern Airlines said its Shanghai and Hong Kong-listed shares were suspended from Monday because it was about to sign a previously announced deal for Singapore Airlines to take a stake in it. A brief statement by China Eastern released in Shanghai did not give details of when the signing would take place or how long the shares would be suspended.
It told the Hong Kong stock exchange that the suspension was related to proposed subscriptions of H shares of the company. The companies announced in September that Singapore Airlines and its parent Temasek would pay US $918 million for a combined 24 percent stake in China Eastern, in the first purchase by foreign firms of a major, strategic stake in a top Chinese airline.
Rival Air China, whose parent owns just over 11 percent of China Eastern, and Cathay Pacific subsequently said they were interested in buying into China Eastern in order to block the Singapore Airlines deal.
But the airlines ultimately abandoned that plan. China Eastern said last month that it was leaving its options open. As of Friday, China Eastern shares in Hong Kong had more than doubled their value to HK$7.69 since May, when the stock was suspensed for more than three months pending the share sale talks between the company and Singapore Airlines.
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