China Eastern and Shanghai Airlines restructuring enter final phase

The first joint restructuring plan involving two listed companies, China Eastern Airlines and Shanghai Airlines, in China's civil aviation history was passed by a large majority at respective general shareholder meetings of the two companies on October 9.

The passing of the restructuring plan at the general shareholder meetings of China Eastern and Shanghai Airlines marks the completion of all internal legal proceedings related to the joint restructuring. The restructuring of China Eastern and Shanghai Airlines is currently in the final phase - awaiting approval from the China Securities Regulatory Commission (CSRC). The plan will officially enter the implementation phase after being submitted to and approved by relevant regulatory authorities.

According to voting results at the general shareholder meetings of the two companies, the plan was supported by as much as 99.6 percent of China Eastern Airlines shareholders and 96.9 percent of Shanghai Airlines shareholders. Liu Shaoyong, president of China Eastern Airlines, said at the company's general shareholder meeting held on October 9 that 99.6 percent is a record pass rate for restructuring plans concerning listed companies.

At present, the China Eastern and Shanghai Airlines restructuring plan has passed the antitrust investigation of the Ministry of Commerce and has been approved by the Civil Aviation Administration and the State-owned Assets Supervision and Administration Commission of the State Council. The plan is currently being examined by the CSRC for approval before being implemented.

Once the restructuring is completed, New China Eastern airlines will be set up and China Eastern Airlines will be the new company's largest shareholder, holding 61.24 percent of its total shares. Shanghai Alliance Investment Ltd and Jinjiang International (Group) Ltd will be the second and third largest shareholders of the new company respectively.

By People's Daily Online