China’s largest online travel agency Ctrip plans to take a 3% stake in China Eastern Airlines for three billion yuan ($463 million).
The private share placement deal is part of an agreement for a collaboration on products and services, the two companies said.
Ctrip has the option to increase its shareholding in the carrier to up to 10% over the next year and could then appoint a director to China Eastern’s executive board.
The carrier has a market valuation of about 70 billion yuan.
Delta Air lines recently bought a 3.55% stake in China Eastern for $450 million.
