Cathay Pacific Airways to sell 12.45% stake in Hong Kong Aircraft Engineering to Swire Pacific

Cathay Pacific Airways Limited has agreed to sell 20.7 million shares, representing a 12.45% stake, in Hong Kong Aircraft Engineering Company Limited (HAECO), a provider of aircraft repair and maintenance services, to Swire Pacific Limited at HKD91.83 ($11.85) per share for approximately HKD1,900.97 million ($245.29 million). All the companies are based in Hong Kong.

Cathay Pacific Airways is an airline company, while Swire Properties is a property developer.

Following the transaction, Cathay Pacific's interest in the issued share capital of HAECO will decrease from 27.45% to 15%, while Swire Pacific's stake will increase from 33.52% to 45.97%.

Deal Value (US$ Million) 245.29
Deal Type                Acquisition
Sub-Category             Minority Acquisition
Deal Status              Announced: 2009-09-16

Deal Participants

Target (Company)   Hong Kong Aircraft Engineering Company Limited
Acquirer (Company) Swire Pacific Limited
Vendor (Company)   Cathay Pacific Airways Limited

Deal Rationale

The transaction would enable Swire Pacific to make a significant increase in its strategic investment in HAECO. 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. In addition, the sale would improve Cathay Pacific's cash position and provide funds that will strengthen its balance sheet.

% Acquisition 12.45%

Related terms: acquisition, aircraft, airline, aviation, engineering, hong kong, investment, property