China Eastern raises $1.02b in share sale

China Eastern Airlines (CEA) said it raised US$1.02 billion in a share sale to parent company China Eastern Air Holdings, the South China Morning Post reported. The parent bought 1.43 billion A-shares at RMB3.87 (US$0.56) each and 1.43 billion H-shares at RMB1 (US$0.14) each, boosting its stake in the company to 74.65% from 59.67%. "The cash injection can help China Eastern Airlines power up its capital reserve, [ensuring] its continuous operating ability in order to go through the current difficulties," the airline said in a statement. CEA is in talks with rival Shanghai Airlines over a possible merger between the two companies. Industry watchers believe that China Eastern could seek a government capital injection or funding from international investors and other strategic sources following a merger.