CK
18-08-2009, 19:45
CITIC sells part Cathay Stake to Air China
(Source : Reuters, August 17, 2009)
CITIC Pacific will sell a 12.5% stake in Cathay Pacific to Air China for HK$6.3b (US$808m), the companies said in a joint statement. Separately, Cathay's parent Swire Pacific will also buy a 2% stake in the Hong Kong carrier for HK$1.01b, bringing its total holdings in Cathay to 41.97%. In a press conference following Monday's announcement, Christopher Pratt, chairman of Swire and Cathay, confirmed that CITIC Pacific had initiated the discussions that led to the sale of the Cathay shares. Analysts said giving Air China expanded ownership in Cathay Pacific could yield benefits for the Hong Kong airline. 'Most people don't believe CITIC had added value to Cathay. Air China could probably create better synergy with Cathay Pacific in terms of expanding and strengthening their routes,' said an analyst.
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(Source : Reuters, August 17, 2009)
CITIC Pacific will sell a 12.5% stake in Cathay Pacific to Air China for HK$6.3b (US$808m), the companies said in a joint statement. Separately, Cathay's parent Swire Pacific will also buy a 2% stake in the Hong Kong carrier for HK$1.01b, bringing its total holdings in Cathay to 41.97%. In a press conference following Monday's announcement, Christopher Pratt, chairman of Swire and Cathay, confirmed that CITIC Pacific had initiated the discussions that led to the sale of the Cathay shares. Analysts said giving Air China expanded ownership in Cathay Pacific could yield benefits for the Hong Kong airline. 'Most people don't believe CITIC had added value to Cathay. Air China could probably create better synergy with Cathay Pacific in terms of expanding and strengthening their routes,' said an analyst.
Full Story