Air China to increase stake in Cathay
Sunday, 30 August 2009
HONG KONG, Aug 29 (AFP): Air China conceded that it had a long-term ambition to lift its stake in Cathay Pacific for a possible takeover of the Hong Kong airline, a report said Friday.
The Chinese flag carrier paid 6.34 billion Hong Kong dollars (US$813 million) this month to boost its holdings in Cathay to 29.99 per cent, just below the 30 per cent threshold that would trigger a mandatory takeover offer.
Air China said it had to persuade controlling shareholder Swire Pacific to allow it to increase its stake, as the carrier was bound by an agreement capping its shareholding for three years, the South China Morning Post said.
"It is not only up to us but subject to mutual understanding between Cathay and Air China," Kong Dong, chairman of the Chinese airline, said according to the report.
The Chinese flag carrier paid 6.34 billion Hong Kong dollars (US$813 million) this month to boost its holdings in Cathay to 29.99 per cent, just below the 30 per cent threshold that would trigger a mandatory takeover offer.
Air China said it had to persuade controlling shareholder Swire Pacific to allow it to increase its stake, as the carrier was bound by an agreement capping its shareholding for three years, the South China Morning Post said.
"It is not only up to us but subject to mutual understanding between Cathay and Air China," Kong Dong, chairman of the Chinese airline, said according to the report.