Singapore & China

Temasek Holdings (Private) Limited (“Temasek”) confirms that it has signed definitive investment agreements, via its wholly-owned investment holding subsidiary Lentor Investments Pte. Ltd. ("Lentor"), with China Eastern Airlines Corporation Limited ("CEA"), China Eastern Air Holding Company ("CEA Holding") and Singapore Airlines Limited ("SIA") for its proposed investment in CEA.

All parties have reached a common consensus and formalised the partnership with the signing of the share subscription agreement and the shareholders agreement. In addition, SIA and CEA have signed the strategic cooperation and personnel secondment agreements.

Mr. Ong Beng Teck, Managing Director of Investment, Temasek, said: "We believe this partnership between Temasek, CEA, CEA Holding and SIA will build on CEA’s strengths to enhance its competitive advantage in the growing China aviation market and contribute to CEA’s financial and operational performance on a sustainable basis.”
Mr. Wan Chee Foong, Director of Investment, added: "We share a common goal with CEA, CEA Holding and SIA to achieve quality service for the travelling public and add to the growth of China’s aviation industry as a whole. As a long-term investor in Asia, we will do our part to underpin CEA’s growth on a strong foundation of best practices and good governance.”

Share Subscription Agreement

Subject to regulatory and CEA's shareholders’ approvals, Temasek via Lentor is expected to subscribe for 649,426,737 new H shares at HK$3.80 per share for a total of approximately HK$2.5 billion (US$315 million) representing approximately 8.27 percent of the enlarged capital of CEA. Subject to certain limited exceptions, the shares issued will be subject to a lock-up of three years.

Upon completion of the transaction, SIA, Temasek and CEA Holding will own 15.73 per cent, 8.27 per cent and 51.00 per cent, respectively, of the enlarged issued share capital of CEA.

Shareholders Agreement

Under the shareholders agreement, Temasek will have the right to nominate one director onto CEA’s board of directors who will also sit on CEA’s Finance Committee and its Planning and Development Committee.

Strategic Cooperation & Personnel Secondment Agreements

The strategic cooperation agreement sets out the key areas of strategic alliance and cooperation between SIA and CEA. These areas include flights, operations, service, procurement, marketing and training. The secondment agreement allows for the secondment by SIA of personnel to executive positions in CEA, therefore allowing SIA to share with CEA its management experience in various aspects of operations, customer service and marketing.

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Note to editors:

For further details on the agreements, please refer to the announcement by CEA (HK: 0670) on the Stock Exchange of Hong Kong:
http://www.hkex.com.hk/csm/news.asp?LangCode=en&mkt=hk&StockCode=670

About Temasek Holdings

Incorporated in 1974, Temasek Holdings is an Asia investment firm headquartered in Singapore. Supported by affiliates and offices around Asia, it manages a diversified S$164 billion (US$108 billion) portfolio, concentrated principally in Singapore, Asia and the OECD economies.

The Temasek portfolio spans various industries including telecommunications & media, financial services, real estate, transportation & logistics, energy & resources, infrastructure, engineering & technology as well as bioscience & healthcare.

Temasek's total shareholder return since inception in 1974 has been more than 18% compounded annually. It has a corporate credit rating of AAA/Aaa by rating agencies Standard & Poor's and Moody's respectively.

Further information on Temasek please visit www.temasekholdings.com.sg.

For media queries, please contact:

Lim Siow Joo
Associate Director, Corporate Affairs
Tel: (65) 6828 6503
Mobile: (65) 9847 0817
E-mail: siowjoo@temasek.com.sg