China Eastern made this remark after Air China (0753.HK; 601111.SH)’s parent company China National Aviation Holding Company (CNAHC) pointed out in an announcement that the 3.8 Hong Kong dollars per share offered by Singapore Airlines (SIA) and Temasek Holdings to purchase H-shares of China Eastern Airlines (CEA.NYSE; 0670.HK; 600115.SH) is too low to reflect the fair value of China Eastern.

CNAHC has asked China Eastern to carry out further talks with SIA and Temasek to put forward better share participation scheme acceptable for CNAHC and meanwhile maintain the rights to raise suggestions that better meet the benefits of shareholders.  

CNAHC, holding 12.07 percent of China Eastern’s H-shares, is the largest H-share holder of China Eastern.

Li Fenghua, board chairman of China Eastern earlier reiterated that the cooperation plan the company reached with SIA is the only plan approved by relevant authorities, with transaction price, cooperation way having been agreed by the government. Li said that if the plan fails to be adopted on the pending shareholders’ meeting on Jan. 8, China Eastern will continue the communication with investors. SIA and Temasek also noted that they will continue supporting the plan and will not raise bidding price. (Edited by Sun Huanjie, )