BEIJING, July 12 (Reuters) - China Eastern Airlines will swap 1.3 of its shares for one share of Shanghai Airlines as part of a long-anticipated merger, the company said in a statement late on Sunday.
Trading in China Eastern, suspended since last week, will resume on Monday, it said.
The terms are in line with a report by the Shanghai Securities News on Thursday.
Shanghai Airlines will become a wholly-owned subsidiary of China Eastern while retaining its brand and independent operation, Xinhua news agency said late on Sunday, citing Liu Jiangbo, spokesman of the team overseeing the tie-up.
The two money-losing carriers have been grappling with weak air travel demand as China's economy slowed.
The merger will give China Eastern, one of China's three state-owned airlines, about a 50 percent market share in Shanghai, the wealthy coastal city that is China's financial centre.
(Reporting by Lucy Hornby; Editing by David Holmes)
((lucy.hornby@thomsonreuters.com; +86 10 6627-1269; Reuters Messaging: lucy.hornby.reuters.com@reuters.net)) Keywords: CHINA AIRLINES/MERGER (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Trading in China Eastern, suspended since last week, will resume on Monday, it said.
The terms are in line with a report by the Shanghai Securities News on Thursday.
Shanghai Airlines will become a wholly-owned subsidiary of China Eastern while retaining its brand and independent operation, Xinhua news agency said late on Sunday, citing Liu Jiangbo, spokesman of the team overseeing the tie-up.
The two money-losing carriers have been grappling with weak air travel demand as China's economy slowed.
The merger will give China Eastern, one of China's three state-owned airlines, about a 50 percent market share in Shanghai, the wealthy coastal city that is China's financial centre.
(Reporting by Lucy Hornby; Editing by David Holmes)
((lucy.hornby@thomsonreuters.com; +86 10 6627-1269; Reuters Messaging: lucy.hornby.reuters.com@reuters.net)) Keywords: CHINA AIRLINES/MERGER (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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