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China Eastern Airlines lists China Cargo Airlines stake for sale

2-Jan-2013 12:40 PM

China Eastern Airlines listed (21-Dec-2012) its entire 51% stake in China Cargo Airlines on the Shanghai United Assets and Equity Exchange for sale, at a price of CNY950 million (USD148 million) on 21-Dec-2012. The intentional transferees will have a registered capital of not less than CNY1000 million (USD156 million), have freight transportation management experience, have to remain profitable for the past three consecutive years and with a net asset of not less than CNY1500 million (USD234 million). China Cargo Airlines reported CNY5369 million (USD839 million) in revenue and a net loss of CNY637 million (USD99.5 million) in the first 11 months of 2012. By the end of Nov-2012, the carrier also had total assets of CNY5303 million (USD829 million) and net assets of CNY362 million (USD56.6 million). China Cargo Airlines, which was officially established in May-2012, is a JV between China Eastern (70%) and Cosco Group (30%). In Dec-2010, China Eastern, Cosco Group, Concord Pacific Limited and Singapore Cargo Airlines signed a capital increase agreement to contribute CNY1046 million (USD163 million), CNY349 million (USD55 million), CNY328 million (USD51 million) and CNY328 million (USD51 million) respectively to China Cargo Airlines. Following the capital injection, China Eastern held a 51% stake, followed by Cosco Group (17%), Concord and Singapore Cargo Airlines both with 16% each. [more – original PR – Chinese]