China Eastern Airlines Corp. Ltd. (SEHK:670) entered into an agreement to acquire remaining 30.7% in Shanghai Eastern Logistics Co., Ltd. from China Ocean Shipping (Group) Company (COSCO) and China Cargo Airlines Ltd. on December 6, 2012. China Eastern Airlines entered into an agreement to acquire 29.7% in Shanghai Eastern Logistics from COSCO for approximately CNY 560 million in cash and 1% stake in Shanghai Eastern Logistics from China Cargo Airlines. China Eastern Airlines shall pay the consideration to COSCO in cash on a one-off basis within five days from the date of execution of the agreement and the consideration will be funded from China Eastern Airlines' internal resources. After completion of the acquisitions, Shanghai Eastern Logistics will become a wholly-owned subsidiary of China Eastern Airlines.

For the year ended December 31, 2011, Shanghai Eastern Logistics reported net assets of CNY 815.19 million, total assets of CNY 1.2 billion, net profit before tax and extraordinary items of CNY 320.49 million and net profit after tax and extraordinary items of CNY 236.89 million. The transaction is exempt from approval of independent shareholders of China Eastern Airlines. China Ocean Shipping (Group) Company shall transfer the stake on the date of execution of the agreement. The acquisition is not expected to have a material impact on China Eastern Airlines' normal operations and financial condition.

China Eastern Airlines Corp. Ltd. (SEHK:670) completed the acquisition of remaining 30.7% in Shanghai Eastern Logistics Co., Ltd. from China Ocean Shipping (Group) Company (COSCO) and China Cargo Airlines Ltd. in December 2012.