China Eastern Airlines, the nation's third-largest airline, has received in principle approval from the central government to sell a stake of about 24 per cent to Singapore Airlines and Temasek Holdings for about US$930 million, according to a source.
Singapore Airlines would pay about US$600 million for about 16 per cent of the mainland carrier while Temasek, the investment arm of the Singapore Government, would pay about US$330 million for about 8 per cent, the source said.
Temasek, which owns 54 per cent of Singapore Airlines, manages a S$129 billion (HK$662.52 billion) portfolio of investments that includes holdings in Bank of China and China Construction Bank.
A China Eastern spokesman denied the deal had been approved.
The stake sale will help China Eastern ease its high level of debt and provide Singapore Airlines with increased access to the rapidly growing mainland market.
At the end of March, China Eastern had 24.6 billion yuan in aggregate loans.
