Air China abandons private stock sale

AIR China Ltd, the nation's biggest carrier by market value, has scrapped plans for a private share sale citing "uncertainty" about the proposal.

The airline abandoned the offering because an "element of uncertainty" meant the timing wasn't ripe, according to a Shanghai stock exchange statement yesterday. Its shares will resume trading in the city today. The Beijing-based carrier last week extended a trading halt as it worked on the planned sale. It never said how much it intended to raise.

Air China announced the planned offering on October 9 even though it is yet to complete a 1.05 billion yuan (US$168 million) share sale to its state-controlled parent that was approved by its board in April. China Southern Airlines Co and China Eastern Airlines Corp, the nation's two other big carriers, have also agreed share sales to their parents this year as the government helps the industry contend with slower growth.

China Eastern plans to raise 3.6 billion yuan selling shares to its parent, based on a September statement. China Southern announced a sale of as much as 2 billion yuan in June. The Guangzhou-based carrier's parent also bought 5 million shares on the Shanghai exchange on October 11.

Air China's parent China National Aviation Holding Co yesterday separately unveiled plans to sell 1 billion yuan of three-year bonds.

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