China Eastern Airlines said on September 2 that it would sell a 24% stake to Singapore Airlines and Temasek Holdings for US$923 million, the Wall Street Journal reported. This is a significant deal because it could signal increased foreign investment in China's airlines. The Chinese airline will make the transaction by selling 2.98 billion new H-shares at HK$3.8 (US$0.49) in a private placement. Singapore Airlines will buy a 15.7% stake worth US$602.8 million while Temasek will pay US$320.6 million for 8.3%. Temasek controls 54.8% of Singapore Airlines. China Eastern's parent company, China Eastern Air Holding, will buy the remainder of the new shares for US$538.7 million, bringing its total holdings in the airline to 51%. Singapore Airlines and Temasek will together be allowed to nominate three directors to the board. Singapore Airlines' chief executive said his company would participate actively in management. The deal still requires shareholder and regulatory approval, but China Eastern's chairman said that the State Council, or cabinet, had approved it in principle.