Air China seeks shareholder approval for $20 bn private placement

Air China has convened its third extraordinary general meeting of shareholders for 2025 to approve a proposed private placement of A-shares to China National Aviation Holding Corporation Limited (CNAHC) and China National Aviation Capital Holdings Co., Ltd. (CNA Capital). The issuance aims to raise up to 200.00 bn yuan, with proceeds intended for debt repayment and replenishing working capital. CNAHC intends to subscribe for no less than 50 bn yuan, and CNA Capital no less than 150 bn yuan.

The proposed issuance will comprise up to 3,044,140,030 A-shares, representing no more than 30% of the company's total share capital before the issuance. The shares will be priced at 6.57 yuan per share. CNAHC and CNA Capital are considered related parties, and will be subject to a lock-up period of 18 months from the issuance completion date.

Shareholders will vote on various resolutions, including the company's eligibility for the issuance, the specific A-share issuance plan, the use of proceeds, and the company's dividend distribution plan for 2025-2027. The resolutions also include a request for authorization for the board of directors to handle all related matters. The meeting is scheduled for December 16, 2025, at 11:00 AM in Beijing.