Swire to sell part of its stake in Cathay
Swire Pacific on Friday said it would sell 153.1 million shares in Cathay Pacific Airways via a share placement, representing around 2.5 percent of the airline's total issued shares. It said the placing price would be HK$11.74 per share, which was determined after a series of negotiations between the two parties with reference to Cathay's prevailing stock price and other considerations. The company said net proceeds from the sale would be around HK$1.79 billion. After subtracting the current book value of the block of shares, at around HK$1.42 billion, Swire said it expected to record a gain of HK$365 million from the placement, with the net proceeds expected to be used for general working capital purposes. Swire will remain the largest shareholder of Cathay with a more than 45 percent stake in the airline after the sale. (Reuters) Edited by Edmond Fong