Cathay Pacific increases stake in Air China; ICICI acquires 5.7% of Kingfisher
Cathay Pacific Airways has increased its stake in Air China from 18.43% to 18.77%, paying approximately USD5.2 million for 5.48 million shares in the carrier. There is extensive cross-shareholding between the carriers, with Air China owning almost 30% of the Hong Kong-based airline as of the end of 2010, behind Swire Pacific, which held 43%. Shares in Cathay Pacific were down 0.1%, while Air China shares closed 1.6% lower.
Also in Chinese airline stocks, Shandong Airlines shares leapt 10%. The carrier has forecast an increase in net profit of 70-91% year-on-year, to USD24.2-27.3 million, with basic earnings per share of CNY0.40 to CNY0.45. The carrier attributes its positive forecast to sustained recovery in China’s domestic economy and the rapid growth of the domestic air transport market.
In India, ICICI Bank has acquired 28.26 million shares in Kingfisher Airlines, taking a 5.68% stake in the airline, on the conversion of compulsorily convertible preference shares. Shares in Kingfisher Airlines were 1.2% lower yesterday.
Selected Asia-Pacific airline share price movements (% change): 07-Apr-2011