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China Eastern sells stakes in cargo unit to four firms
June 19, 2017 / 7:17 AM / 3 months ago

China Eastern sells stakes in cargo unit to four firms

SHANGHAI, June 19 (Reuters) - China Eastern Air Holding said on Monday it has sold stakes in its freight unit to four firms including Legend Holdings and Global Logistic Properties (GLP) in the Chinese aviation sector’s first mixed-ownership reform deal.

The parent company of China Eastern Airlines said in a statement it signed the deal for Eastern Air Logistics with the four companies, which also include Chinese logistics firm Deppon Logistics and Greenland Financial, at a ceremony in Shanghai.

China Eastern Air Holding will retain a 45 percent stake in the cargo unit, while Legend Holdings, GLP, Deppon and Greenland will hold 25 percent, 10 percent, 5 percent and 5 percent respectively. The remaining 10 percent will be held by Eastern Air Logistics’ core employees, it added.

Financial terms of the deal were not disclosed. (Reporting by Brenda Goh; Editing by Gopakumar Warrier)

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