Citic Pacific sells 14.5% stake in Cathay Pacific to Air China and Swire Pacific

Air China and Swire Pacific will buy the majority of Citic Pacific's shareholding in Cathay Pacific Airways, upping significantly the Chinese flag carrier's stake in Cathay. The deal has been positioned as a new boost to the growth plans of the Hong Kong-based airline.

Citic Pacific will sell 491.8 million Cathay Pacific shares, representing 12.5% of the company's outstanding shares, to Beijing-based Air China and an additional 78.6 million shares, representing 2% of the company, to Swire Pacific. The entire deal is worth around HK$7.3 billion $942 million at HK$12.88 per Cathay Pacific share with Air China paying HK$6.3 billion and Swire HK$1 billion. The price is an 11%...