SDIC to Offer Cash Option for China Eastern, Shanghai Air Shareholders

By staff reporter Zhang Lihua

(.com.cn) China Eastern Airlines said that State Development & Investment Corp., a state-owned investment firm, will purchase shares held by shareholders who vote against the proposed merger between the carrier and smaller rival Shanghai Airlines Co..

China Eastern shareholders who do not want to enter into the deal can exercise a cash option that would grant them 5.28 yuan per A-share and HK$1.56 per H-share, while Shanghai Airlines shareholders can receive 5.50 yuan in cash for each share held, China Eastern said in a statement to the Shanghai Stock Exchange on Aug. 10.