Air China is planning to sell part of its stake in Cathay Pacific, even as it stresses that its support for the Hong Kong-based carrier “remains unchanged”.
In a filing on 6 January, the Chinese state-owned carrier says it intends to offload a 1.61% stake in Cathay, in a deal valued around HK$1.32 billion ($170 million).
Beijing-based Air China is the second largest shareholder of Cathay Pacific, holding a stake of around 28.7%. Following the sale of its stake – expected to be completed no later than 8 January – Air China’s will be reduced to around 27.1%.
The deal is the latest change in Cathay shareholding in recent months: in November, Cathay said it would be buying back a 9.57% stake held by Qatar Airways. Cathay at the time said the overall consideration for the buy-back is just under HK$6.97 billion.
After Qatar disposes its shares, Air China’s shareholding will rise to 29.98%, while main shareholder Swire Pacific’s stake goes up to 47.65%.
Air China in its filing states: “[Air China] remains an important strategic shareholder of Cathay Pacific and continues to be optimistic about Cathay Pacific’s development prospects, and its support for Cathay Pacific remains unchanged.”
