A row of China Eastern Airline jets. Photo: AFP
A row of China Eastern Airline jets. Photo: AFP

China Eastern Airlines is planning to raise 11.8 billion yuan (US$1.78 billion) through a private placement of A-shares, as well as HK$3.55 billion (US$450 million) via H-shares, The Paper reported.

The private offering of A-shares will be issued to Jixiang Airlines, JuneYao Group and its designated subsidiaries, and China State-owned Enterprise Structure Adjustment Fund Co. Ltd.

The offering of H-shares will be given to Jixiang Airlines and its designated holding subsidiaries.

After that, JunYao Group and the concerted parties will become important shareholders of the company, holding more than a 5% stake.

It is worth noting that JuneYao Group is also the controlling shareholder of Jixiang Airlines.

Founded in 1991, JuneYao Group has formed five business segments of air transportation, financial services, modern consumption, education services and technology innovation.