22nd Jan 2008 09:00
Air China Ld22 January 2008 AIR CHINA LIMITED(a joint stock limited company incorporated in the People's Republic of China with limited liability) (Stock Code: 753) Overseas Regulatory Announcement Announcement on CNACG's proposal in respect of investment in China Eastern Airlines and formation of a strategic partnership with China Eastern Airlines This announcement is made pursuant to Rule 13.09 (2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Air China Limited (the "Company" ) received Proposal in respect of Investmentin China Eastern Airlines Corporation Limited ("China Eastern Airlines" ) andFormation of a Strategic Partnership with China Eastern Airlines (the "Proposal" ) from one of its substantial shareholders, China National AviationCorporation (Group) Limited ("CNACG" ), on 18 January 2008. After issuing an announcement on the 7 January 2008 edition of the South ChinaMorning Post and the Hong Kong Economics Times, CNACG submitted the Proposal tothe board of directors of China Eastern Airlines on 18 January 2008, whichcontemplates that CNACG and/or relevant parties it represents (collectively, the"CNACG Parties" ), and China Eastern Air Holding Company will jointlysubscribe for the 2,984,850,000 H Shares to be issued by China Eastern Airlinesat a price of not less than HK$5 per H share. The Proposal further suggeststhat, notwithstanding whether or when the abovementioned proposal on the sharesubscription will be implemented, the CNACG Parties will endeavour to procurethe cooperation between the Company and China Eastern Airlines in three areas,including: (1) cooperating with China Eastern Airlines to establish an aviationhub operation system in Shanghai with China Eastern Airlines being the principalpart; (2) integrating the cargo business of the Company and China EasternAirlines; and (3) carrying out comprehensive cooperation between the Company andChina Eastern Airlines. CNACG, as one of our shareholders, may submit to the board of directors of theCompany proposals that are conducive to the development of the Company. TheCompany will seriously consider and actively respond to the proposal in respectof the business cooperation between the Company and China Eastern Airlines as suggested by the Proposal. With the development of theProposal, the Company would obtain the relevant approvals and make disclosureaccordingly pursuant to applicable laws and regulations. However, at present,the Company has not made any decision in connection with the proposal orsuggestion by CNACG. By order of the Board Huang Bin Li Man Kit Joint Company Secretaries Beijing, the PRC21 January 2008 As at the date of this announcement, the Directors of the Company are Kong Dong,Wang Shixiang, Yao Weiting, Christopher Dale Pratt, Chen Nan Lok, Philip, MaXulun, Cai Jianjiang, Fan Cheng, Hu Hung Lick, Henry*, Wu Zhipan*, Zhang Ke* andJia Kang*. * Independent non-executive Director of the Company This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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