China Eastern Airlines confirms detailed merger plan with Shanghai Airlines

China Eastern Airlines confirms detailed merger plan with Shanghai Airlines
Jul 12, 2009 22:24
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	China Eastern Airlines announced on late Sunday that it will merge Shanghai Airlines through “shares swap’. Shanghai Airlines will swap one of its A shares for 1.3 shares of China Eastern Airlines after China Estern Airlines’ share holders give a 25% risk premiem to Shanghai Airlines. The two airlines will resume stock trading in Shanghai on Monday. Their shares have been suspended from trading since June 8 while waiting for the merger talks. After the merger, Shanghai Airlines will become a wholly-owned subsidiary of China Eastern Airlines and retain its brand and independent operation. China Eastern Airlines will have about 50% market share in Shanghai after the merger. The merger will strengthen China Eastern Airlines’ competitive strength over its two major rivals Air China and China Southern Airlines.

Jul 12, 2009 22:24

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China Eastern Airlines announced on late Sunday that it will merge Shanghai Airlines through “shares swap’.

Shanghai Airlines will swap one of its A shares for 1.3 shares of China Eastern Airlines after China Estern Airlines’ share holders give a 25% risk premiem to Shanghai Airlines. The two airlines will resume stock trading in Shanghai on Monday. Their shares have been suspended from trading since June 8 while waiting for the merger talks.

After the merger, Shanghai Airlines will become a wholly-owned subsidiary of China Eastern Airlines and retain its brand and independent operation. China Eastern Airlines will have about 50% market share in Shanghai after the merger. The merger will strengthen China Eastern Airlines’ competitive strength over its two major rivals Air China and China Southern Airlines.

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