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China Eastern Airlines to sell stake in CEA Investment for 461.9 mln yuan

Hong Kong (XFN-ASIA) - China Eastern Airlines Corp Ltd (CEA)

said it has entered into an agreement to sell its 98.79 pct stake in China Eastern

Air Investment Co Ltd (CEA Investment) for about 461.9 mln yuan.

It said its unit East China Cares System Co Ltd has also agreed to sell its 1.21 pct interest in CEA Investment for 5.66 mln yuan.

China Eastern Airlines said the asset sale will boost the group's cashflow, lower the debt to asset ratio and enhance its business growth.

Proceeds from the sale will be used mainly for purchase of aircraft to increase flight capacity and bolster the group's competitiveness, it said.