China Eastern Airlines Co., Ltd. has signed agreements to sell stakes in wholly owned subsidiary Eastern Air Logistics Co., Ltd. to private shareholders.

The state-owned company will sell a 25% stake to Legend Holdings, 10% to GLP, 5% to Deppon Logistics, 5% to Greenland Holding Group, and 10% to core employees of EAL. The remaining 45% will be held by China Eastern Airlines.

EAL is expected to have a value of approximately RMB4.1 billion (US$600 million), of which private capital accounts for RMB2.3 billion (US$340 million) and state capital accounts for RMB1.85 billion (US$270 million).

EAL will become the first state-owned airline logistics company to introduce private capital and employee stock ownership.

EAL was established by China Eastern in 2012.