Cathay Pacific agrees to sell part of equity stake in HAECO
Cathay Pacific agreed (16-Sep-2009) to sell 20.7 million shares, representing 12.5% of its shareholding, in Hong Kong Aircraft Engineering Co Ltd (HAECO) at HKD91.83 (USD11.85)/share to Swire Pacific, a transaction valued at approximately HKD1,901 million (USD245 million), subject to the approval of Cathay Pacific's independent shareholders. If approved, Cathay Pacific's direct interest in HAECO will decrease from 27.5% to 15.0%, while Swire Pacific's stake will rise from 33.5% to 45.96%. [more - Press Release][more - Stock Exchange Filing]
Cathay Pacific/Swire Pacific/HAECO: "The transaction will bring clear advantages for all parties concerned. From a Cathay Pacific point of view, it will improve the airline's cash position during an extremely difficult time for the aviation industry. At the same time, the carrier will retain a strategic interest in HAECO. The transaction will enable Swire Pacific to make a significant increase in its strategic investment in HAECO on terms it regards as appropriate. At the same time, it affirms Swire Pacific's long-term commitment to Cathay Pacific and HAECO in particular, and to Hong Kong aviation in general," Christopher Pratt, Chairman. Source: Company Statement, 16-Sep-2009.