LATE NEWS: SIA, Temasek may buy 24% of China Eastern

Singapore Airlines Ltd and parent Temasek Holdings Pte Ltd may pay about $930 million for a stake in China Eastern Airlines Corp. to expand the carrier’s reach in the world’s most populous nation, Bloomberg reported. SIA would invest about $600 million and Temasek about $330 million for a combined stake of about 24 percent, said […]


Singapore Airlines Ltd and parent Temasek Holdings Pte Ltd may pay about $930 million for a stake in China Eastern Airlines Corp. to expand the carrier’s reach in the world’s most populous nation, Bloomberg reported.

SIA would invest about $600 million and Temasek about $330 million for a combined stake of about 24 percent, said four people, who asked not to be identified before the terms of the deal are finalised and approved by regulators.

The report said that a deal would give SIA more access to a market forecast to grow fivefold by 2025. China Eastern, the nation’s only listed carrier to make a loss last year, may reduce debt and gain a partner to help fend off competition from Cathay Pacific Airways Ltd. and Air China Ltd. in Shanghai, its home market.

China Eastern has a market value of $4.89 billion, meaning a 24 percent stake would be valued at about $1.17 billion.

A deal would help SIA, which made a record US$1.4 billion profit last fiscal year, build on its 104 flights a week to Chinese cities including Beijing and Shanghai. It would also complement the carrier’s cargo operations, which according to analysts, offers significant opportunities.