Air China, the country’s flag carrier, has agreed to pay Citic Pacific, the Hong Kong arm of the Chinese investment group, HK$6.3bn ($813m) to lift its stake in Cathay Pacific, only three years after first securing a holding in the HK airline. The transaction with Citic will increase Air China’s stake in Cathay from 17.5% to 29.99% – just below the takeover threshold. Swire Pacific, Cathay’s controlling shareholder, also agreed to pay HK$1bn for an extra 2% of the airline, bringing its shareholding to 42%.

This entry was posted by Gwen Robinson on Tuesday, August 18th, 2009 at 4:52 and is filed under Capital markets. Tagged with Air China, cathay pacific, citic, Swire Pacific. Edit this entry.