Singapore Airlines will take a 25 percent stake in China Eastern Airlines Corp. for HK$7.9 billion ($1.01 billion) through a new share offer, Caijing, an influential Chinese financial magazine, reported.

China Eastern, one of the country's three biggest carriers, is expected to issue 2.045 billion new Hong Kong-listed H shares to Singapore Airlines at HK$3.88 each, the magazine said in a report on its Web site, citing sources familiar with the situation.

China Eastern also plans to issue 1.267 billion H shares at the same price to its state parent, which will hold a 51 percent stake in the Chinese listed company after the share placements, it said.

On Tuesday Singapore Airlines, the world's biggest airline by market value, confirmed it was poised to make a major investment, but declined to name its target.

China Eastern said in a statement issued to the Shanghai Stock Exchange on Wednesday that its Shanghai-listed shares would continue to be suspended pending an announcement related to a significant transaction.

China's Eastern's shares in Hong Kong and Shanghai were suspended on Tuesday amid speculation that it would soon seal a deal with Singapore Airlines.