China Eastern Airlines Corporation Limited (SHSE:600115) announced that it has entered into share subscription agreements for a private placement of shares for gross proceeds of CNY 14,799,151,428 on July 10, 2018. The company will issue maximum of 1,616,438,355 A shares of par value CNY 1 for maximum proceeds of CNY 11,800,000,000 and maximum of 517,677,777 H shares of par value CNY 1 for maximum proceeds of CNY 2,999,151,428 in the transaction. The transaction will include participation from Juneyao Airlines Co., Ltd (SHSE:603885) for maximum of 342,465,753 A shares and 517,677,777 H shares, Shanghai Juneyao (Group) Co., Ltd. and/or its designated subsidiaries for a maximum of 1,000,000,000 A shares and China Structural Reform Fund Co., Ltd. for a maximum of 273,972,602 A shares.

Post-closing, Juneyao Airlines Co., Ltd (SHSE:603885) will own maximum of 10% stake in the company. The transaction is subject to approval from the board of directors, shareholders in the extraordinary general meeting which will be held on August 30, 2018, state-owned assets supervision and administration commission of the state council and from China Securities Regulatory Commission. The transaction has been approved at the 15th meeting of the 8th directorate by the company and 9th session of the 3rd directorate by the investor.

The shares issued are subject to a lock-up period of 36 months from the date of closing.