CSRC nods China Eastern's merger with Shanghai Airlines
BEIJING, Dec 01, 2009 (Xinhua via COMTEX) --
Company: Shanghai Airlines Co (SAHIF)
The merger plan of two Shanghai-based airlines China Eastern Airlines (CEA.NYSE; 00670.HK; 600115.SH) and Shanghai Airlines was nodded by the regulator China Securities Regulatory Commission Monday.
According to the merger plan China Eastern announced in July, China Eastern would swap 1.3 of its Shanghai-listed A shares for every Shanghai Airlines share. Shanghai Airlines, which has 1.3 billion outstanding shares, will be delisted from the Shanghai stock exchange after the merger with China Eastern.
The merger will involve capital of 8.9 billion yuan. The new China Eastern after the merger will take over 50 percent market share in Shanghai.
The A-shares of the two airlines resumed trading Tuesday upon CSRC's approval on their merger plan. The stocks of the two companies have suspended trading since last Thursday to wait for the decision of CSRC.
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Company: Shanghai Airlines Co (SAHIF)
Related terms: china, market share, merger, securities, shanghai, yuan
