Air China Ltd. (SEHK:753) announced that it intends to conduct a private placement with existing investor, China National Aviation Holding Company for gross proceeds of CNY 1,000,000,000 on August 31, 2011. The implementation of the capital injection will be subject to the execution of the relevant agreements and approvals of the relevant regulatory authorities.

On April 19, 2012, the company announced that will raise CNY 1,050,740,000 in funding from China National Aviation Holding Company. The company is also planning to issue shares to other investors.

On April 26, 2012, the board of directors approved the transaction. The company will issue 188,642,729 A shares at CNY 5.57 per share for gross proceeds of CNY 1,050,740,001. Upon completion of the transaction, the investor will increase its stake in the company from 39.98% to 40.85%. The shares issued will be subject to a hold period of 36 months. The shares will be issued within six months upon approval by the China Securities Regulatory Commission. The transaction as approved at 25th session of the 3rd directorate.

On June 26, 2012, the company got the approval at extra ordinary general meeting of the shareholders for issuance of the shares in 2nd special stockholders' meeting. The company received approval on the report on feasibility of usage of funds raised.

On July 24, 2012, the company amended the terms of the transaction. The company will now issue 192,796,331 A shares at CNY 5.45 per share.

On October 9, 2012, the company announced that it will suspend trading of class-A shares as it will carry out capital increase by third party allocation and will announce the details of the capital increase on October 16, 2012.

On November 1, 2012, the China Securities Regulatory Commission approved the transaction.

On January 21, 2013, the company announced that it has received a formal approval from China Securities Regulatory Commission to place no more than 192,796,331 new A shares. The formal approval will expire after six months since the date of approval. The board of directors of the company will proceed the placing of A shares according to the authorization from the shareholders' meeting of the company. Haiwen & Partners is serving as company's legal advisor for the private placement.

On January 29, 2013, Air China Limited closed the transaction. The company raised gross proceeds of CNY 1,050,740,003.95 in the transaction. The company bore expenses of CNY 6,290,820.48 to raise net proceeds of CNY 1,044,449,183.47. The shares are subject to a lock-up period of 36 months, following which they shall be listed on the stock exchange on February 1, 2016. The investor will have 41.47% stake in the company pursuant to the transaction. CITIC Securities Co., Ltd. served as the lead underwriter in the transaction.