China Eastern to keep seeking strategic investor after SIA deal expiry

China Eastern Airlines said Monday it will continue to seek strategic investors "of world renown" after the expiry of an agreement on a stake sale to Singapore Airlines (SIA).

"The company will persist in the direction of introducing strategic investors and will continue to develop opportunities of business cooperation with strategic investors of world renown," it said in a statement to the Shanghai Stock Exchange.

The nation's third-largest carrier said the agreement for SIA and Temasek Holdings, Singapore's state-linked investment firm, to invest in the firm had expired on Saturday because conditions for investor subscription were not met.

SIA and Temasek Holdings signed a preliminary deal in September to take a 24-percent stake in China Eastern for 923 million US dollars, or 3.8 Hong Kong dollars per share.

But the deal was voted down by minority shareholders in January after China National Aviation Corp. (CNAC), the parent company of Air China, indicated it would make a higher offer.

China Eastern's management then rejected the CNAC offer, insisting it would continue to seek a partnership with Singapore Airlines.

SIA said in a statement on Sunday that "although the agreements have expired, Singapore Airlines will explore other means of developing the relationships."

"Singapore Airlines continues to be optimistic about the prospects for China's airline industry," it said.

However, Chinese state media has said Singapore Airlines might have lost its enthusiasm for China Eastern.

The 21st Century Business Herald reported on Friday that Singapore Airlines had proposed it would not extend the agreement inked in September to seek an equity cooperation following the expiry on August 9, citing unnamed sources.

A SIA spokesman declined to comment on the report when contact by AFP on Friday.