China Eastern Airlines Corp.'s deal to sell a 24 percent stake to Singapore Airlines Ltd. and its parent company, Temasek Holdings Pte., has been ratified, Singapore Airlines said Friday.
Singapore Airlines agreed in September to buy a 15.7 percent stake in the Chinese carrier, while Temasek Holdings agreed to simultaneously buy another 8.3 percent of China Eastern.
The combined offer of 7.2 billion Hong Kong dollars (US$927 million; euro639 million), or 3.80 Hong Kong dollars a share, had already been approved by the Chinese government and China Eastern's board.
The statement said the three sides signed four agreements that ratified the purchase terms and strategic partnership.
It said that SIA will be entitled to buy a further stake in China Eastern if Beijing relaxes its foreign ownership rules in the future.
The deal is still subject to approval by CEA shareholders who are expected to vote on the deal in December.
China Eastern suspended trading in its yuan-denominated A shares on Monday and said trading will resume after the agreement is signed.
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