China Eastern Air says deal with Singapore expired

SHANGHAI: China Eastern Airlines said its agreement to sell a strategic stake to Singapore Airlines and Temasek Holdings has expired and cannot be completed, although the carrier is still looking for strategic investors.

The Shanghai-based airline agreed last year to sell a 24 per cent stake to Singapore Airlines and Temasek Holdings, the Singapore government's investment arm.

The deadline for a final agreement was Saturday and since the conditions for the deal were not met it automatically ended, China Eastern said in an announcement to the Hong Kong Stock Exchange on Sunday.

But the airline said it ``will persist in the direction of introducing strategic investors ... to enhance the company's international competitiveness.''

The deal with Singapore Airlines and Temasek was rejected by China Eastern's minority shareholders after state-owned China National Aviation Holding Co., parent company of Beijing's flag carrier Air China, offered more money. But that deal was not completed either.

Recent reports had speculated that China Eastern and the Singaporean consortium might resume talks.