DELAY IN DESPATCH OF CIRCULAR

RNS Number : 1435Z

Air China Ld

15 July 2008

 



The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss whatsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 753)

MAJOR TRANSACTION

PURCHASE OF 20 AIRBUS 330-SERIES AIRCRAFT

DELAY IN DESPATCH OF CIRCULAR

AND

CLARIFICATION ON THE CONSIDERATION FOR

AIRBUS TRANSACTION

Reference is made to the Announcement of the Company issued on 26 June 2008 in connection with the Airbus Aircraft Purchase Agreement and the Airbus Transaction contemplated therein, which constitutes a major transaction for the Company under the Listing Rules. The Company has applied to the Hong Kong Stock Exchange for an extension of the date for despatch of the Circular to the shareholders of the Company. The Company expects that the Circular will be available for despatch as soon as practicable but no later than 31 July 2008. The directors of the Company are of the view that the extent of the price concessions granted to the Company in the Airbus Transaction is comparable with the price concessions that the Company had obtained in the 2007 Airbus Aircraft Purchase.

Reference is made to the Company's announcement dated 26 June 2008 (the Announcement) in connection with the Airbus Aircraft Purchase Agreement and the Airbus Transaction contemplated therein, which constitutes a major transaction for the Company under the Listing Rules. Except as otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

DELAY IN DESPATCH OF CIRCULAR

Pursuant to Rule 14.38 of the Listing Rules, a circular that contains the information required under the Listing Rules in connection with the Transaction (the Circular) is required to be despatched to the shareholders of the Company within 21 days after publication of the Announcement, namely, on or before 17 July 2008. As additional time will be required to finalize the Circular, in particular, to prepare certain financial information including the indebtedness statement for inclusion in the Circular, the Company has applied to the Stock Exchange for a waiver from strict compliance with the requirements under the Listing Rules in relation to the timing for the despatch of the Circular. The Company expects that the Circular will be available for despatch as soon as practicable but no later than 31 July 2008.

CLARIFICATION ON THE CONSIDERATION FOR AIRBUS TRANSACTION

Reference is made to the 'Consideration' section of the Announcement. The directors of the Company are of the view that the extent of the price concessions granted to the Company in the Airbus Transaction is comparable with the price concessions that the Company had obtained in the 2007 Airbus Aircraft Purchase.

By order of the Board

Air China Limited

Huang Bin   Li Man Kit

Joint Company Secretaries

Beijing, 15 July 2008

As at the date of this announcement, the Directors of the Company are Messrs Kong Dong, Wang Shixiang, Yao Weiting, Ma Xulun, Christopher Dale Pratt, Chen Nan Lok, Philip, Cai Jianjiang, Fan Cheng, Hu Hung Lick, Henry*, Wu Zhipan*, Zhang Ke* and Jia Kang*.

* Independent non-executive Director of the Company

 

END

 

 

MSCUVRNRWARBAAR