According to the company announcements of the two airlines, a cash option will be provided to shareholders who disagree with the two airlines' share swap merger plan. The prices offered for the dissenters' shares of China Eastern and Shanghai Airlines were respectively set at 5.28 yuan and 5.50 yuan per share.

China Eastern announced in July that it would swap 1.3 of its Shanghai-listed A-shares for every Shanghai Airlines share. Shanghai Airlines, which has 1.3 billion outstanding shares, will be delisted from the Shanghai Stock Exchange after the merger.

The merger plan has already been given the green light by the China Securities Regulatory Commission and is now within its implementation stage.

China Eastern will suspend stock trading from Tuesday to Thursday of this week and Shanghai Airlines will suspend trading since Tuesday until its delisting procedures are completed.

(c) Centre for Asia Pacific Aviation. Date posted: 12-Jan-10

In-depth analysis of the Chinese airline and airport sectors, including

latest traffic and financial reports and outlooks, is available each month

in the Monthly Essential China.

http://centreforaviation.com/minisites/mec/

Other China Eastern Airlines News

• Honeywell to provide maintenance to China Eastern
• China Eastern: major transaction of 16 A330
• China Eastern, Shanghai Airlines to suspend trading for merger
• China Eastern: Issue of A shares approved by CSRC
• China Eastern Airlines overseas regulatory announcement
• China Eastern Airlines and Alibaba Group form strategic alliance in e-commerce
• Czech Airlines Agreed to Code-Share Cooperation with China Eastern Airlines on the Shanghai Route
• China Eastern and the Civil Aviation University of China select flight training Australia
• USD1 billion cash injection for China Eastern Airlines
• ALAFCO's aircraft leases renewed