China Eastern’s parent to pump in up to $1.67bn via A-share issue

China Eastern Airlines’ controlling shareholder CEA Holding will inject up to CNY10.8b ($1.67b) into the airline by purchasing nearly 2.5b of newly issued A-shares, in a move the Shanghai-based carrier says will provide “strong financial support” for it to develop its business to cope with the impact of Covid-19. The A-shares, which have a par value of CNY1 ($0.15), will be issued at CNY4.34 per share, a 2 February filing to the Hong Kong stock exchange shows. A-shares are shares denominated in Chinese yuan and trade on the Shanghai and Shenzhen stock exchanges. CEA Holding holds approximately 49.8% of the 16.4b China Eastern shares in issue. It directly and indirectly holds around 5.53b A-shares and about 2.63b H-shares – shares of mainland Chinese companies that are traded on the Hong Kong stock exchange – through CES Global Holdings (Hong Kong). CEA Holding must purchase the additional A-shares within a twelve-month validity period from 2 February, the date on which the issuance was approved at a China Eastern board meeting. China Eastern says it will use the proceeds to replenish its liquidity and repay debts. <br/>